The semiconductor shortage continued to cause headaches in the automotive industry as Toyota said it won’t meet its fiscal-year output target due to the lingering chip scarcity.
The concession came months of sticking with its initial goal of 9.7 million vehicles in the year ending March 31. It said it will produce 800,000 vehicles in November and pause work at its plants in Japan. That’s about 100,000 short of its former target.
The original output goal was still significantly above its record of 9.08 million vehicles. Continued industrywide supply issues ultimately made it elusive.
J.P. Morgan Research forecasted in August that the general chip supply would increase in the second half of the year and that the shortage is nearing its end, but that Volkwagen estimated supply would likely continue to be inadequate to meet automotive industry demand until 2024.
The U.S. government is investing billions of dollars into domestic production of semiconductors, in part to wean its markets off of Asian suppliers, particular in China.
Meanwhile, Forbes reported that a black market in chips is thriving due to the shortage, some of them substandard in quality.