Now, Pakistan's automobile industry hit by global semiconductor shortage
A global shortage of semiconductor chips has affected consumers of cars and households in Pakistan, according to industry players. According to them, the lack of availability has also affected prices of chips and delivery times, The Express Tribune reported.
South Korea, China and the United States have announced plans to fund semiconductors research and their manufacturing at homes, according to media reports.
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More countries are now pushing to produce their own semiconductor chips, which are in short supply globally, because "it's a matter of national security," the Pakistan publication reported citing the CNBC which quoted a Moody's analyst this month.
In July, China's automobile sales have affected as demand for semiconductors and prices of raw materials have been increasing, straining the country's economic recovery and weighing on global trade.
Sales of passenger cars in June were down 5.1 per cent from a year earlier to 1.58 million vehicles, The Wall Street Journal reported citing China Passenger Car Association.
The global chip shortage crisis emanated in mid-2020 when countries started imposing lockdowns to counter the COVID-19 spread. With more and more people staying at and working from home, the demand for electronics, and the computer chips they contain, skyrocketed, according to The News International.
The shortage crisis further worsened due to a sharp rebound in demand from the automobile industry in the second half of that year. Ever since then, the severely overloaded semi-conductor industry has struggled to keep pace with the market demand of around 160 industries, it further reported.