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Supply Chain

Reuters | Equities.com |

The U.S. trade deficit surged to a record high in February as the nation’s economic activity rebounded more quickly than that of its global rivals and could remain elevated this year, with massive fiscal stimulus expected to spur the fastest growth in nearly four decades.

The economy is roaring as increased COVID-19 vaccinations and the White House’s $1.9 trillion pandemic rescue package boost domestic demand, a chunk of which is being satiated with imports. President Joe Biden last week proposed a $2 trillion infrastructure plan, expected to pull in even more imports and fire up economic growth.


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.


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.


AP News | Equities.com |

Experts boarded the massive container ship Tuesday that had blocked Egypt’s vital Suez Canal and disrupted global trade for nearly a week, seeking answers to a single question that could have billions of dollars in legal repercussions: What went wrong?

As convoys of ships again began traveling through the artery linking the Mediterranean and Red Seas, a canal service provider said more than 300 vessels carrying everything from crude oil to cattle were still waiting for their turn in a process that will take days. Egyptian government officials, insurers, shippers and others similarly waited for more details about what caused the skyscraper-sized Ever Given to become wedged across the canal on March 23.


Reuters | Equities.com |

Tesla Inc Chief Executive Officer Elon Musk tweeted on Tuesday that a cell supply shortage is making it difficult to scale up production of its long-delayed Tesla Semi commercial truck.

"Demand is no problem, but near-term cell supply makes it hard to scale Semi. This limitation will be less onerous next year," the billionaire entrepreneur said here.


AP News | Equities.com |

Salvage teams on Monday finally freed the colossal container ship stuck for nearly a week in the Suez Canal, ending a crisis that had clogged one of the world’s most vital waterways and halted billions of dollars a day in maritime commerce.

A flotilla of tugboats, helped by the tides, wrenched the bulbous bow of the skyscraper-sized Ever Given from the canal’s sandy bank, where it had been firmly lodged since March 23.


Kimberly Redmond | Equities.com |

Renesas Electronics Corporation (OTC US: RNECY) said damage from a recent fire at one of its chipmaking plants in northeast Japan is more extensive than initially reported.

Following the March 19 fire at the Naka plant, the company said 11 machines – about 2% of its manufacturing equipment – were destroyed, but on Monday the Nikkei reported the number of inoperable machines is now believed to be around 17.


Reuters | Equities.com |

(Reuters) -Stellantis NV and Chinese electric vehicle maker Nio became the latest carmakers to announce new production cuts as a result of a global semiconductor chip shortage.

Stellantis said on Friday it will temporarily halt production at five North American plants next week because of the global microchip shortage: two assembly plants in Canada, one in Mexico and two in the United States. The production halts will start next week through early to mid-April.


Reuters | Equities.com |

The Biden administration said Friday it wants new public input on establishing licensing or other procedures to help companies comply with a sweeping new rule targeting Chinese technology firms.

On Monday, the U.S. Commerce Department allowed a regulation issued under then President Donald Trump in January to take effect over objections from U.S. business groups.