Nissan said Tuesday that it ran short of chips due to a COVID-19 outbreak at a chip factory in Malaysia. It expects production to resume Aug. 30.
The shutdown is among the longest at any U.S. auto plant of this size since the semiconductor shortage, which has hobbled auto production worldwide, started to hit late last year.
Analysts say the closure of the large Nissan factory for two weeks is a sign that the semiconductor shortage may not be coming to an end late this year as many auto executives had hoped. The shortage and plant closures, coupled with strong consumer demand in the U.S., have caused shortages of new vehicles across the nation. That has driven up prices, and the shortage has spilled into the market for used vehicles.
Large chip foundries in Taiwan and elsewhere in Asia take large silicon wafers and turn them into multiple smaller integrated circuits. They’re then shipped to “back end” manufacturers in Malaysia where they are cut into chips that are used in automotive control computers.
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