Toyota is one of the many car makers that paused production

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Toyota halts production of the factory in the Czech Republic for two weeks due to a shortage of computer chips. It is the umpteenth time that the Japanese automaker has to stop production somewhere because of this and other problems. Toyota makes the passenger car Aygo for the European market in the Industrial City of Kolín, west of the capital Prague.

For example, Toyota had already suffered from disruptions due to the winter weather in the United States, which caused production delays in automotive raw material suppliers. Last month, the earthquake off the coast of Japan’s Fukushima caused temporary factory delays. A fire also caused damage to a Renesas Electronics factory in Japan, one of the largest manufacturers of chips for the automotive industry and of which Toyota is a major customer.

In addition, the automotive sector has been struggling with chip shortages for some time. This is due to a very high demand for equipment for home work and entertainment during Coronation time, such as computers, laptops and game consoles. Other automakers such as Honda and Nissan were forced to stop production earlier. Tech companies such as Samsung also noticed the impact of the semiconductor shortage. Samsung recently said it was considering postponing a new model of smartphone as a result. According to Samsung, there is a” serious imbalance ” in the semiconductor sector.

Experts warn that the car industry may need to build up more stocks due to the accumulation of problems.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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