According to the Reuters news agency, South Korea’s Hyundai Motor Co, Swiss industrial robot maker ABB and Swedish refrigerator maker Electrolux, among others, believe that the shortage of semiconductor chips has eased, which is a boost to manufacturing companies that have long competed for parts. While the easing of the chip shortage will ease the plight of the manufacturing industry, however, the industry is simultaneously struggling with rising raw material prices, tight energy markets and rising interest rates, which have dampened consumer demand.
Hyundai Motor reported its highest net profit in eight years in the second quarter. Hyundai’s net profit raised to 2.8 trillion won in the second quarter of this year from 1.8 trillion won in the same period last year, as the continued weakness of the won boosted its overseas profits and continued strong demand for the company’s high-margin SUVs and high-end Genesis vehicles. The automaker was also buoyed by an easing of the global chip shortage.
ABB, a large supplier to the automotive industry, said semiconductor supply bottlenecks are easing as it reported second-quarter earnings. The Swiss-based company, which competes with Germany’s Siemens and France’s Schneider Electric, is seen as a barometer of the global economy, with its control systems and motors used in the transportation industry and factories.
ABB CEO Rosengren said chipmakers are increasing capacity while demand in other industries, such as consumer electronics, appears to be lower, allowing more chips to be allocated to industrial customers such as ABB.
Finnish telecom equipment maker Nokia said it expects the global semiconductor shortage to ease later this year after the company reported quarterly operating profit that beat market expectations.
Volkswagen last month forecasted a strong second half of 2022 and progress in catching up with rival Tesla as easing chip shortages begin to offset supply chain bottlenecks and rising costs.
Sweden’s Electrolux also said supply conditions, including semiconductors, looked better in the third and fourth quarters than in previous quarters.
