Subaru Corp to suspend production at Indiana plant due to global shortage of semiconductors

Japanese car manufacturer Subaru said today that it was halting manufacturing at its plant in Indiana through the end of this month because of worldwide shortage of semiconductors.

Carmakers from Ford Motor to Nissan Motor have cut production because of the shortage of chips, used extensively in new cars for automatic windows, parking assistance and entertainment system, reports Reuters

A Subaru spokeswoman said 15,000 vehicles for North America would be affected, reports Reuters.

She said that a continued global shortage for chips, rather than a recent fire at Renesas Electronics Corp’s chip-making factory, was the main factor behind the suspension.

Increased demand for video games from people staying at home amid a global pandemic has also led to the scarcity, analysts say.

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