Chip shortage driving French industry down
The global shortage of semiconductors that has been plaguing the automobile industry is helping drive industrial production lower in France, data showed on Monday.
Manufacturing of motor vehicles fell by 7.9% in May from the previous month “due to shortages of raw materials in the automotive industry”, the national statistics agency Insee said.
That helped drag down overall industrial production by 0.3% during the month.
Coronavirus pandemic lockdowns caused a shift in consumer spending towards electronics and a spike in demand for the semiconductor chips that run them.
Modern automobiles can use dozens of such chips in their various electronics systems, and carmakers have had to slow or idle factories when they have run out of supplies.
Published in The Express Tribune, July 6th, 2021.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.