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Ford limits production at North American plants due to chip shortages

Ford F-150 will be affected by the semiconductor crisis.

Ford limits production at North American plants due to chip shortages

Due to the current worldwide chip shortage, a North American manufacturer is likely to temporarily decrease its production output. On Friday, a Ford representative informed Reuters that the carmaker would decrease or cease production at eight of its plants in the United States, Mexico, and Canada.

The closure is set to begin on February 7th. The decision will have an impact on the Kansas City facility, which manufactures the F-150, one of Ford’s most popular and expensive cars.

This isn’t the first time Ford has had a chip shortage, nor is it the only carmaker impacted by the condition. Due to component shortages, General Motors temporarily suspended production at all but four of its North American plants in September.

The US Commerce Department warned at the start of the year that semiconductor supply restrictions would endure until at least the second half of 2022.

“We aren’t even close to being out of the woods,”

Department Secretary Gina Raimondo said

Companies such as Ford have taken steps to solve the issue. The business signed a strategic partnership with GlobalFoundries in November to enhance US semiconductor production, although the automobile is unlikely to gain from that arrangement for some time. Meanwhile, Ford told Reuters that it expects its production volume to “substantially increase” in the second half of the year.

The worldwide chip shortage has damaged not just automobiles, but also smartphones and electronic items such as PlayStation. The current PS5 series has substantial supply chain concerns because it is scheduled to last until the end of 2022 or, more likely, 2023.

Nintendo also has suffered a significant loss and has warned that a chip shortage will have an impact on Switch sales. Meanwhile, the AMD CEO Lisa Su has also said that the chip shortage isn’t going away anytime soon.

Sit back, relax and watch how the tech giants will suffer from the global supply chain crisis as the demand for electronic devices that are powered by the semiconductor chip shortage has skyrocketed. This isn’t going away anytime soon!

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Written by Hammad Khalid

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