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Semiconductors

AP News | Equities.com |

Detroit (AP) — General Motors’ first-quarter net income surged to $2.98 billion as strong U.S. consumer demand and higher prices offset production cuts brought on by a global shortage of computer chips.

Despite the shortage, GM stuck with full-year pretax earnings guidance of $10 billion to $11 billion issued earlier in the year and said earnings would be at the high end of the range. Full-year net income is expected to be between $6.8 billion and $7.6 billion. The company predicts a strong first half with a pretax profit of around $5.5 billion.


Reuters | Equities.com |

Mercedes-Benz car maker Daimler AG on Friday raised its profit outlook for 2021, but said the global semiconductor chip shortage may continue to impact sales in the second quarter.

Daimler said it assumed there would be some recovery in chip availability in the second half of this year but there was limited visibility at present.


Kimberly Redmond | Equities.com |

Renesas Electronics Corporation, a key automotive semiconductor supplier, said one of its plants in northeastern Japan damaged by a fire in March will be running at full capacity by the end of May.

On Monday, Renesas said it restarted partial production over the weekend at the Naka plant and will gradually ramp back up to 100% output by the end of May and should reach its previous shipping volumes by early July.


Reuters | Equities.com |

U.S. President Joe Biden met with executives from major companies on Monday to discuss the global chip shortage that has hit automakers and spurred Intel Corp to announce it plans to make chips for car plants at its factories in the next six to nine months.

During the meeting, Biden said he had bipartisan support for legislation to fund the semiconductor industry. He previously announced plans to invest $50 billion in semiconductor manufacturing and research as part of his drive to rebuild U.S. manufacturing under a $2 trillion infrastructure plan.


Reuters | Equities.com |

General Motors Co and Ford Motor Co both said on Thursday they will cut more vehicle production due to a semiconductor chip shortage that has roiled the global automotive industry.

The White House plans a summit on the chip shortage issue next Monday that is expected to include GM Chief Executive Mary Barra and Ford Chief Executive Jim Farley and top technology firm executives.


Kimberly Redmond | Equities.com |

Apple Inc (Nasdaq: AAPL) has postponed production of some MacBooks and iPads as the global semiconductor shortage continues, Nikkei Asia reported on Thursday.

According to the report, MacBook production is being hit by a lack of chips that are mounted on the computer’s circuit board, while the iPad is being slowed by issues in the supply chain for display components.


Reuters | Equities.com |

A U.S. auto industry group on Monday urged the government to help as it warned the global semiconductor shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months.

The U.S. Commerce Department should dedicate a portion of funding in a proposed bill to expand U.S. semiconductor production to auto sector needs, the Alliance for Automotive Innovation said in written responses to a government-initiated review.


Kimberly Redmond | Equities.com |

Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, plans to invest $100 billion over the next three years to expand its manufacturing capacity to keep up with rising demand. 

On Thursday, the Taiwan-based company said it will use the funds to “increase capacity to support the manufacturing and [research and development] of advanced semiconductor technologies.” 


Reuters | Equities.com |

A recent fire at a Japanese semiconductor factory and severe weather in parts of the United States in February have exacerbated an ongoing chip shortage plaguing the global auto industry, data firm IHS Markit said on Wednesday.

IHS said it now expects disruptions to the production of nearly 1.3 million global light vehicles, up from a prior forecast of 1 million in the first quarter.


Kimberly Redmond | Equities.com |

Samsung Electronics Co said production at its US semiconductor plant in Texas has returned to near-normal levels following more than a month of disruption.

The South Korean chipmaker’s Austin plant was ordered to temporarily halt production amid power outages and severe winter weather last month.