The ongoing struggle to supply semiconductors to the industries that need them, including the motoring industry, could finally be nearing an end.
This is according to market forecasts published by Micron Technology Inc, a firm that produces memory chips, stock values have “weakened considerably in a very short period of time”.
This trend was echoed by similar drop-offs late last week from other chip manufacturers like TSMC, MediaTek, ASML, STMicroelectronics, and Infineon, according to Reuters.
Industry pundits see this trend as an indicator that semiconductor supply is finally approaching demand, following years of scarcity created by unprecedented demand as people across the world were locked down at home due to COVID-19.
While the majority of chip companies that have impacted by a drop in stock price aren’t necessarily companies that supply semiconductors to the motoring industry, pundits still believe it is an encouraging sign.
This has been echoed by Volkswagen. Reuters reports that the German marque posted last week that the chip shortage seems to be easing and production bottlenecks appear to be on the improve.
It’s evident that some brands are still hurting due to the shortage.
Toyota confirmed two weeks ago that it would be slashing its global production goal for July by 50,000 units due to the chip shortage.
“As it remains difficult to look ahead due to the shortage of semiconductors and the spread of COVID-19, there is the possibility that the production plan be lower,” said Toyota in a statement.
“However, we will examine the parts supply closely to minimize sudden decreases in production, and continue to make every effort possible to deliver as many vehicles to our customers at the earliest date.”
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