Japanese company Rohm warns that the shortage of essential semiconductors for automobiles and industrial machinery should continue at least throughout the next year:
Japan’s Rohm, a Kyoto- based chip maker, whose customers include Toyota Motor, Ford Motor, and Honda Motor, has been facing a severe shortage of essential materials and problems on production lines, said CEO Isao Matsumoto.
The company started expanding its capacity last September and plans to invest an additional 70 billion yen ($636 million) in the current fiscal year, but the contribution generated by these expenses will not be noticed immediately because the machines are taking longer to arrive, he added. the executive.
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“All of our production units have been running at full capacity since September last year, but we are overwhelmed with orders,” Matsumoto said in an interview this week. “I don’t think we’ll be able to deliver the entire order book next year.”
Other companies in the industry, including Infineon Technologies, have warned that supply chain problems are likely to last much longer than anticipated. Semiconductor lead times are already stretching 20 weeks, while the delta variant of Covid-19 complicates efforts to normalize operations in Japan and Southeast Asia.
The lack of materials and components, aggravated by congestion in rail, sea, and air traffic, has forced automakers such as Toyota and Volkswagen to brake or suspend production in recent weeks. Japan’s Toyota said last week that it will temporarily halt production at 14 factories.