Toyota Motor decreased its Toyota and Lexus production target on Tuesday from a previous goal of 9.7 million units to 9.2 million units for the current fiscal year through March, citing the possibility of problems with chip supply.
Despite expecting record output, the Japanese automaker cuts its full-year production goal by 500,000 vehicles. The world’s largest vehicle manufacturer claims that despite a general decline in semiconductor demand, it is still unable to obtain enough of the components.
Toyota Motor Corp. cited the possibility of problems with chip supply when it reduced its Toyota and Lexus production target for the remainder of the current fiscal year through March from a previous aim of 9.7 million units to 9.2 million.
The predicament reflects long-term underinvestment in a few older chip types that automakers particularly require. There are still some areas of constricted supply despite the fact that demand for smartphones and personal computers has decreased, alleviating memory and other chip shortages as well as fears of a glut.
