Austin’s NXP Semiconductors may lose $100 million due to chip shortages

Austin-based NXP Semiconductors reported that as Texas was shut down for a month due to a grid collapse caused by cold weather, it could cost the company $100 million.

Why it’s a matter of concern?

The global chip shortage (due to pandemic-related supply chain disruptions and climate change-related disasters) has put the US auto manufacturing industry in trouble and may threaten the vitality of economic recovery after the pandemic.

  • NXP’s Austin plant is back online, however Samsung has not yet resumed full production.
  • In Taiwan, the main center of semiconductor production, droughts related to climate change threaten chip production, and chip production depends on an adequate supply of water.
  • An analysis by Seeking Alpha shows that large technology companies like Apple have more experience in planning long-term chip demand and have locked in their supply, while the automotive industry with a “just-in-time” production concept may encounter greater Difficulties.

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