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Brace for production cuts, shipment delay due to chip shortage: Analysts

The suppliers' delivery time index component of the manufacturing PMI declined in eight out of nine Asian economies in August to an average of 41.3 from 42.0 in July - both below the 50 mark threshold

Chipmaking, Chips, Chip makers
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Puneet Wadhwa New Delhi
The semiconductor chip shortage that has put most industries, especially the auto sector in India, on a bumpy road is unlikely to resolve soon. According to a latest report by Nomura, the spread of the delta variant amid still-low vaccination rates in many ASEAN economies and China’s zero tolerance Covid strategy has prompted governments to impose restrictions and order factory / port closures. 

ALSO READ: Automobile sales skid on chip shortage; dealers stare at supply crunch

As a result, shortage of raw material, port congestion and unavailability of containers have lengthened lead times – the time taken between ordering

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First Published: Sep 02 2021 | 11:01 AM IST

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