Automakers are facing a shortage of microchips—which are essential parts in every electronic device. Toyota, the largest carmaker in the world is the latest to be hit by the crisis. The company will be cutting their vehicle production, making only 540,000 cars from the original 900,000 in September. Volkswagen, the world’s second-biggest car producer, has also announced that they would be forced to cut production. The high demand for devices that use chips such as game consoles and laptops is one of the factors that caused the shortage.

The global chip shortage is also causing problems to other industries. Apple had to delay the release of its iPhones, while Xbox and Playstation consoles failed to meet the demand. According to Pat Gelsinger, the CEO of chipmaker Intel, it would take “a year or two” before supplies returned to normal. In light of the chip crisis, President Joe Biden has called for financial support to increase the chip supply in the United States. Toyota’s shares decreased by 4.4% on August 19, 2021, their biggest daily drop since December 2018. The goal for the company is to make up for any lost bulk by the end of 2021.