Connect with us

Economy

Chip Crisis Reaches Industry Giants and Threatens 2022

Published

on

Chip Crisis Reaches Industry Giants and Threatens 2022

The automotive sector is forced to curtail production. Toyota alone has cut the number of vehicles planned for September by 40%. Harsh amplification in the semiconductor industry is not enough to meet demand.

They have no more than 5-7 nanometers, but they are necessary for the brains of all kinds of systems that power devices, from simple household appliances to smartphones, from cars to robots. And since there are only half a dozen manufacturers in the world, even giants, especially China, unexpected events of recent times, from pandemics to natural disasters and trade blockades, have driven the production of chips. And its lack is creating problems for the global industry, especially in the automotive sector, where semiconductors are becoming an increasingly prominent feature of onboard safety and entertainment equipment.

The outlook is not good if it is expected that even the measures taken to overcome the chip crisis, including Bosch’s new plant in Dresden, dedicated exclusively to its mass production and in quantities double the current figures, will not provide relief. a problem the consequences of which are already affecting the world’s giants. Toyota, the world’s largest carmaker that has bypassed the crisis so far and achieved a record profit of 7 billion euros in June (+ 465% from a year earlier) this week, announced that it will have to cut global sales. production up 40% in September. A spokesman for the manufacturer, Kazunari Kumakura, explained to the FT that “the sudden and radical decision to drastically cut production” is due to “the increasing difficulty of securing the required number of components.” That’s 360,000 fewer cars from the planned 900,000 that will leave the auto giant’s factories next month after a new coronavirus outbreak in Malaysia and Vietnam has led to a cut in the production of microchips and other electronic components. News that caused a Japanese manufacturer to lose $ 14 billion on the stock exchange.

See also  Toyota believes hydrogen can kill gasoline | fuel

Autoeuropa and Bosch Braga also suffer

In Portugal, chip shortages are already taking their toll, even causing car production to drop by about 30% in June, ACAP reported, Associação Automóvel de Portugal, due to a lack of components, Autoeuropa has come to a standstill. Bosch Car Multimedia in Braga, which develops solutions for several car brands, also suffered from component shortages even before the summer. And if he didn’t have to close his doors, “some supply problems” forced the Portuguese plant to lay off workers because of the “worsening situation,” which forced them to stop working for a long time.

Even with China boosted electronic chip production by almost 50% in the first six months of this year, up from production recorded prior to June last year – it currently produces more than 1 billion integrated circuits a month, Beijing sold more than 30 billion microcircuits for factories around the world – the answer that is now being sought is far from what would be needed to solve the problem of the shortage of semiconductors on the market. And there are even those who expect this crisis to last until 2022, even with the strengthening of China and the help of Bosch, which has been investing one billion euros since September in a plant in Dresden to increase production. It is the German giant’s largest investment to increase chip distribution for the automotive industry, creating, as Reuters explained in June, 300mm thick silicon wafers (double the normal size) to get more chips per chip. …

The effect will continue next year.

See also  Tesla rival Cybertruck began deliveries

Speaking to the press after meeting with investors, Technology Ndivia CEO said Thursday that despite the agreements reached “to ensure long-term supply to meet market expansion goals,” “we will continue to face challenges in the vast majority of countries. next year. ”Also Luca de Meo, CEO of Renault, is not very optimistic, predicting that what he sees as a“ structural problem ”will continue“ until 2022, ”increasing tensions even if production capacity improves. Reuters Harald Wilhelm, Daimler’s chief financial officer, joins the chorus to say he sees the semiconductor crisis continue to take its toll next year, continuing to impact car sales.

Problems that have become widespread among the largest brands. Earlier this week, Volvo, owned by China’s Geely, joined a number of struggling manufacturers by announcing production cuts at its Swedish plants. Already on Thursday, Elon Musk pointed the finger at semiconductor suppliers to justify the accumulated production delays at Tesla. “As has been publicly disclosed, we are operating under extreme constraints in the supply chain of some standard ICs for the automotive industry. The most problematic ones today are the (Japanese) Renesas and Bosch, ”the entrepreneur wrote on Twitter.

The good news is for chipmakers who have seen skyrocketing profits. As demand rises and market deficits increase: even as automakers are cutting global production, chip companies improved their results by an average of more than 20% in the first half of this year, according to specialized sites.

Find out more at Dinheiro Vivo – your life-saving brand

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Europe ends the session in green. Oil is on the rise. Interest Weakens – Minute Markets

Published

on

Europe ends the session in green.  Oil is on the rise.  Interest Weakens - Minute Markets

Europe recovers from worst day in three weeks and accelerates growth

The main markets of Western Europe opened weekly trading in positive territory, investors are closely watching the companies’ quarterly earnings and losses. It comes after the underlying Stoxx 600 recorded its worst day in three weeks on Friday under pressure from the tech sector, which fell more than 2%.

The core index of the Old Continent added 0.76% to 439.04 points, with all sectors trading in positive territory. The oil and gas sector recorded the largest growth, followed by the mining sector and utilities (water, electricity, gas). On the other hand, food, media and telecommunications traded with gains below 0.5%.

“Markets have proven resilient in recent weeks,” Esty Dweck, an analyst with Flowbank, explains to Bloomberg. “Europe continues to surprise with growth, but growth prospects remain negative, suggesting that recent good performance is unlikely to last until the end of the year.”

Among the main indexes in Western Europe, the German Dax rose 0.98%, the Spanish IBEX 35 added 0.91%, the French CAC-40 and the Dutch AEX added 0.71%. Britain’s FTSE 100 added 0.61%, while the Portuguese PSI jumped 0.74%.

Italy’s FTSEMIB added 0.81% even after rating agency Moody’s downgraded the “forecast” of the country’s economic growth.

See also  10 Creative (and Less Obvious) Ways to Save Money on Electricity Bills
Continue Reading

Economy

Russian weapons depend on hundreds of Western components, report condemned

Published

on

Russian weapons depend on hundreds of Western components, report condemned

More than 450 foreign-made components were found in Russian weapons found in Ukraine, providing strong evidence that Russia acquired important technology from companies in the US, Europe and Asia years before the invasion, Royal United said in a report on Monday. RUSI), a defense-related think tank.

Since the start of the war five months ago, the Ukrainian military has been seizing or returning undamaged or partially damaged Russian weapons from the battlefield. After dismantling, 27 of these weapons and military systems, from cruise missiles to air defense systems, turned out to be predominantly Western components, the most detailed assessment published to date of the role of Western components in Russia’s war against Ukraine. .

According to RUSI, about two-thirds of the components were manufactured by US companies based on weapons seized from Ukraine. The products of Analog Devices and American Texas Instruments account for almost a quarter of all Western weapons components. Other components were supplied by companies from countries such as Japan, South Korea, the UK, Germany, Switzerland and the Netherlands.

“Russian weapons, which are critically dependent on Western electronics, have resulted in the deaths of thousands of Ukrainians,” Jack Watling, RUSI’s ground warfare expert, told Reuters.

While many foreign components are found in everyday items such as microwave ovens that are not subject to export controls, RUSI assured that tightening export restrictions and enforcement could make it difficult for Russia to replenish your arsenal of weapons such as cruise missiles.

In one case, the Russian 9M727 cruise missile, one of the country’s most advanced weapons capable of maneuvering at low altitude, evading radar and hitting targets hundreds of kilometers away, contained 31 foreign components. The parts were made by companies including US-based Texas Instruments and Advanced Micro Devices (AMD), as well as Cypress Semiconductor, now owned by Germany’s Infineon AG.

See also  BCP Seeks To Sell 145 Million Bad and Luxurious Algarve Real Estate - Banking & Finance

In another case, the Russian Kh-101 cruise missile that was used to attack Ukrainian cities, including the capital Kyiv, also had 31 foreign components, with parts made by companies such as US-based Intel Corporation and AMD Xilinx.

When asked how their chips ended up in Russian weapons, the companies assured that they were complying with trade sanctions and stopped selling components to Russia. Analog Devices noted that the company closed its business in Russia and instructed distributors to stop deliveries to the country. Texas Instruments said it complies with all laws of the countries in which it operates and that parts found in Russian weapons are for commercial products. Intel stated that it “does not support or condone our products being used to violate human rights.” Infineon has expressed “deep concern” if its products are used for purposes for which they were not intended. AMD has stated that it strictly follows all worldwide export control laws.

Many foreign components cost only a few euros, and Russian companies could have purchased them online through national or international distributors before the invasion of Ukraine because they could be used for non-military purposes.

However, more than 80 Western-made microchips have been subject to U.S. export controls since at least 2014, meaning they would need a license to ship to Russia, RUSI reported. for the Russian military or for military use, according to RUSI.

The investigation revealed that the Russian military remains dependent on foreign microchips for everything from tactical radios to drones and long-range precision-guided munitions, and that Western governments have been slow to restrict Russia’s access to these technologies, especially after the invasion of Russia. President Vladimir Putin in 2014.

See also  Homes with solar panels in Brazil are up 2000%

According to the National Security and Defense Council, in the first five months of the war, Russian troops fired more than 3,650 missiles. These include 9M727 and Kh-101 missiles. Currently, Russia is looking for new ways to provide access to Western chips, condemned RUSI. Many components are sold through distributors operating in Asia, such as Hong Kong, which acts as a gateway for electronic components entering the Russian military or companies acting on its behalf, RUSI has found, ensuring that the Russian military is constantly undermined. if Western governments tighten export controls, succeed in shutting down clandestine procurement networks in the country, and prevent the production of sensitive components in states that support Russia.

Continue Reading

Economy

Gasoline today falls to pre-war prices: a liter has fallen in price by almost 40 cents in less than 2 months

Published

on

Gasoline today falls to pre-war prices: a liter has fallen in price by almost 40 cents in less than 2 months

The sharp drop in oil prices has sent fuel prices down nearly 40 cents a liter in less than two months, about ten of which are today. But it is the tax cut that allows prices to be lower than they were before the war.

Monday, August 8, half the country on vacation, a little heat is predicted on the beaches … and at gas stations. Fuel prices are currently benefiting from a sharp drop, estimated at about a dime a litre.

Refilling a 50-litre tank today can cost almost five euros less than yesterday. And a trip of 300 km (in a car that consumes about six liters per 100 km) today can cost almost two euros less.

Accounts are the result of evaluation 10 cents reduction for gasoline and 9 cents for dieselwhich will come into force today, although they will not be officially confirmed until tomorrow.

At the heart of this decline are the prices of petroleum products, both refined products and raw materials: last week ended with the international price of oil (measured by the Brent index) just above $94, which in dollars is similar to what took place on February 23, the day before Russian invasion of Ukraine. However, the euro value remains more expensive, as the European currency has depreciated by about 9% against the US dollar since the start of the war.

The fall in oil prices is partly due to the prospects for a cooling economy. But it removed some of the tension that existed over the oil.

Gasoline prices fell nearly 40 cents in less than two months

Simple 95 gasoline should now be sold at an average price below 1.8 euros per liter, the lowest price since the beginning of February, that is, even before the war.

See also  10 Creative (and Less Obvious) Ways to Save Money on Electricity Bills

This means that since the peak in Portugal on June 10 (when it was selling at an average price of 2,188 euros per litre), the price of 95 regular gasoline has fallen by almost 40 cents.

The fall in the price of diesel fuel, which today should be sold at a price approaching 1.75 euros per liter (the lowest since the end of February), was slightly less pronounced, but faster.

Since the record high price on June 23 (when a liter cost an average of 2,111 euros), the average selling price of diesel fuel has decreased by a total of almost 35 cents per liter.

This means that, for example, filling a 50-liter diesel tank in a car today costs about 17 cents less than a month and a half ago.

Oil workers still earn more

This decline in final prices, however, does not mean that fuel prices are identical to those in February.

This equalization of prices with respect to February is possible only because the state now levies less taxes than then. Otherwise, gasoline today would be 32.1 cents per liter more expensive, and diesel 28.2 cents per liter.

If the state receives less, and the Portuguese pay almost the same as in February, then other components of the price are more expensive: who sells raw materials, who processes them and who sells them. Including oil companies, which have increased their profits around the world in recent months. António Guterres, UN secretary general, last week criticized oil and gas companies’ “immoral profits”.

Continue Reading

Trending