Society | Jul 01

Chip shortages hit Japan and China industrial production hard

Japan and China’s manufacturing activities are taking the hit from the worldwide shortage of semiconductors, with both countries reporting declines that might compromise their nascent recoveries.

Japan recorded the steepest fall in industrial production in May, with a sharp fall in car manufacturing due notably to the persistent world shortage of semiconductors, official numbers showed on Wednesday.

Factory output fell 5.9% in May, the Ministry of Economy, Trade and Industry (METI) said – more than double the 2.4% forecast by a Reuters poll of analysts, after an increase of 2.9% the month before. Motor vehicle production fell 19.4% the same month.

The bad economic news come a few weeks before the opening of the Olympics in Tokyo, due to start on July 23 after being delayed by a year.

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