Supply constraints affect the performance of U.S. companies

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The global semiconductor shortage may continue until 2023. It could take a year or two to return to a rational supply-demand balance in the semiconductor industry, said Pat Gelsinger, Intel CEO, who expects supply shortages to begin to show signs of easing. Later this year.

Xinhua writer Liu Yanan

New York, July 29 (Xinhua)-The shortage of chips and components continued to fall below the performance of major US companies in the second quarter, creating inflationary pressure.

In addition, the global supply shortage of semiconductors and components is expected to continue in the coming months.

Microsoft Corp. said Tuesday that Q2 2021 revenue for the Microsoft Surface series fell by US $ 348 million, or 20%, from the same period in 2020 due to supply chain constraints and a strong foundation from the previous year. I am. Quarterly results.

According to Microsoft, revenue from the Original Equipment Manufacturer (OEM) business in the second quarter was down 3% year-over-year due to continued personal computer (PC) demand affected by supply chain constraints.

Apple Inc. warned in April that supply constraints could hinder sales of US $ 3-4 billion in the quarter ending June 26, but the company expected the impact. Also kept low.

Apple CEO Tim Cook said in a conference call Tuesday that the shortfall was in “legacy nodes” or chips that perform routine functions and could be manufactured using older equipment.

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Electric car maker Tesla said on Monday that supply chain challenges, especially global semiconductor shortages and port congestion, continued in the second quarter.

Tesla has shifted the start of its semi-track program to 2022 due to the limited availability of battery cells and global supply chain challenges.

Ford Motor Co. avoided the worst-case scenario of losing 50% of production in the second quarter, but major automakers still have 60,000-70,000 vehicles waiting for parts, the media said Ford’s chief financial officer He quoted John Lawler, the CFO.

General Motors recently announced that it will suspend production at its assembly plants in Fort Wayne, Indiana and Silao, Mexico for a week due to a shortage of chips.

According to media reports, General Motors said, “These latest scheduling adjustments are caused by a temporary component shortage caused by constraints on semiconductor supply from the international market, which is subject to COVID-19-related restrictions. There are. “

However, executives continue to be concerned about supply shortages, despite expectations that mitigation may occur later this year.

“We expect supply constraints in the September quarter to be greater than supply constraints in the June quarter, which will primarily affect the iPhone and iPad,” said Luca Maestri, Apple CFO.

Microsoft Chief Financial Officer Amy Hood announced that supply chain constraints will continue to reduce revenue from Microsoft Surface in the next quarter.

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According to Pat Gelsinger, CEO of Intel Corporation, the global semiconductor shortage could continue until 2023.

It could take a year or two to return to a rational supply-demand balance in the semiconductor industry, Gelsinger said, expecting supply shortages to begin to show signs of easing later this year.

“With global automotive demand at record levels, parts supply will have a significant impact on delivery growth for the rest of the year,” Tesla said.

Tesla CEO Elon Musk says it’s hard to say how long this will last, as chip supply is essentially a factor in controlling Tesla’s output and is essentially out of Tesla’s control. ..

“It looks better, but it’s hard to predict,” Musk added.

“In some industries, short-term supply constraints are holding back activity, which is due to global semiconductor shortages so far this year,” said Jerome Powell, chairman of the Federal Reserve Board of Governors. It’s especially serious in the auto industry, which is cutting significantly. ” on Wednesday.

“Supply bottlenecks, especially in some sectors, are limiting how quickly production can respond in the short term, as the economy resumes and spending continues to recover, Powell said in a press conference. This puts upward pressure on prices. ”

Supply constraints affect the performance of U.S. companies

Source link Supply constraints affect the performance of U.S. companies

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