NIO Announces It Would Halt Production Due To Chips Shortage

NIO Announces It Would Halt Production Due To Chips Shortage

Chinese electric vehicle maker NIO has announced that it would halt production due to a shortage in semiconductor chips. The halt will be for five working days, at its Hefei plant.


The company says it plans to suspend production from Monday, 29th March 2021. NIO also cut its first-quarter delivery forecast to around 19,500 vehicles. It had earlier predicted 20,000 to 20,500 vehicles for the period.


The company is not alone as several other automakers are also halting production for the same reason. Like NIO, Both Honda and General Motors had announced earlier this week that they would continue to suspend production at their plants in North America for the coming weeks, citing the chips shortage as the reasons for their decisions.

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Ford and Volvo also announced that the semi-conductor shortage was going to have an impact on its productivity. The company announced that the shortage would have a “substantial” impact on its second-quarter earnings. It also announced it would implement stop days across its truck manufacturing sites globally starting in April 2021.


Covid-19 shutdowns affecting chip productions, the booming demand for laptops and tablets due to increased reliance on working from home, and US sanctions against Chinese tech companies had sparked a global shortage of chips affecting both electronic and manufacturing sectors in December 2020.


Initially, the shortage had primarily affected just the auto industry, however, it widened to affect a range of consumer electronics, including smartphones.



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Kolawole Awolope

Passionate about talking, passionate about talking tech.

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