The lack of chips at Nokia

02. 05. 2022 Monday / By: Robert Denes / Industrial / Exact time: BST / Print this page

The continuing shortage of chips and other raw materials is forcing the world’s largest technology and automotive companies like Nokia, Apple, Daimler, Volvo to cut their targets this year.

Nokia CEO Pekka Lundmark told CNBC reporter Julianna Tatelbaum on Thursday: The Finnish telecommunications company would have grown faster in the last quarter if there had been no problems with the supply chain.

"The positioned, but still stable close," - he said.

“When we talk about semiconductors, we see improvement here and there. Right now, it’s pretty supplier-specific, but if we look at the whole year and the second half of the year, we’re still hoping things will start to look better towards the end of the year.”

This will further increase the short-term uncertainty of the Chinese closures, Lundmark said, referring to Nokia's chip supply chain.

Automotive companies tend to use highly advanced chips, and the effects of the ongoing chip crisis are still being felt.

The global chip shortage wreaked havoc on the azip industry in 2021 as many struggled to find the pieces of silicon they needed to function like cruise control and parking sensors.

Daimler CEO Ola Källenius told CNBC: Annette Weisbach told Friday that ongoing supply shortfalls, especially for semiconductors, are one of three major challenges in the current business environment. Källenius added that the new Covid shortcuts in China, one of Daimler’s largest markets, could affect supply chains around the world.

Volvo Cars CEO Jim Rowan said on CNBC's "Squawk Box Europe" on Thursday: Volvo doesn't have enough of a single set of chips at the moment.

He added that the company will be affected by the problem in the second quarter, but said the company has “provided the supply” which will help in the second half of the year.

Berenberg economists Kallum Pickering and Salomon Fiedler said in a research note on the eurozone last month that car production was still far behind orders.

Chip sales are said to be booming, but significant price increases mean the rebound in real terms will be less than the proposed sales value.

“It takes time to catch up with order backlogs. Companies need to work overtime for a while, ”the statement said.

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