A new round of factory shutdowns will reduce chip production, and automobile production may be affected again

The global chip shortage may not end in the short term – unfortunately, it's not just a prediction, it's a fact.

Chipmakers around the world are troubled by the shutdowns triggered by a new health crisis. Two major chip manufacturing giants, including Samsung and Micron, have recently announced that they will reduce product production.

Specifically, both companies claim that their production operations in China have been severely affected after the northwestern Chinese city of Xi'an became semi-closed due to the epidemic.

Samsung has confirmed in a statement that the company has made adjustments to its business in the above-mentioned regions. But the company said the measure was only temporary.

In other words, Samsung wants to resume factory production as soon as possible in order to increase chip production to normal levels.

Micron also acknowledged in a recent statement that its chip production is facing challenges. The company also explained that it had reduced the number of shifts at the corresponding factories at the request of the local government.

Although Micron confirmed that there is only a possibility of delay in chip supply, the relevant impact is still beginning to appear.

Currently, Samsung produces NAND memory chips at its Xi'an plant, while Micron manufactures DRAM memory chips locally. Most of these chips are used in computer, tablet and mobile phone manufacturing, but given that Samsung and Micron are the two largest chipmakers in the world, their current production woes may eventually affect other industries.

In this case, the world's major automakers are also preparing for a new round of chip supply shortages. Under the continued influence of global health problems, a new round of chip supply problems may appear in the first few months of this year.

Globally, many chip factories are facing the risk of reducing production or stopping production, and some factories will even be forced to lay off employees.

As for whether the industry will be hit as hard as it did last year, it remains to be seen. However, many industry insiders predict that by the beginning of next year at the latest, there will be some recovery in the chip supply industry.