Japan Trade Deficit:

 Article Source: https://mainichi.jp/english/articles/20220915/p2g/00m/0bu/024000c

Article:

TOKYO (Kyodo) -- Japan posted a record 2.82 trillion yen ($19.7 billion) trade deficit in August after higher energy prices and a sharp drop in the yen pushed the value of imports to their highest-ever level, the Finance Ministry said Thursday.

The country's trade deficit has been widening recently and August marked the 13th straight month of red ink, underscoring the impact resource scarcity and heavy dependence on imports have on Japan.

The deficit was larger than the previous record of 2.80 trillion yen seen in January 2014.

Ideas:

While the value of imports might have increased there still might have been a large volume of exports but of course the weak yen inflated the value of imports to the point that the volume of exports look not so good.

But then again the weak yen increased the value of exports in for example the US but because the weak yen is at record levels the value of imports are at an all time high too.

There is probably nothing that Japan can do about the resource-poor situation, meaning it can't just produce or create the resources needed in Japan.

One of the challenges might be that many companies even in Japan trade in US dollars and that might be a problem too.

Most likely many Japanese companies have bought dollars or exchanged the yen on the futures market as a way to protect themselves from the yen weakening but the yen keep weakening which makes a future exchange for even a month from now a major challenge if the yen continues to weaken.

Article:

Imports surged 49.9 percent to 10.88 trillion yen, the largest increase by value since comparable data became available in 1979, lifted by higher prices for energy sources such as crude oil, coal and liquefied natural gas.

Exports, meanwhile, jumped 22.1 percent to 8.06 trillion yen after shipments of cars and chip-related equipment increased.

"The weaker yen is boosting (the cost of) imports at a time of surging energy prices. Energy and grain prices have shown signs of stabilizing recently, but the impact of the sharp drop in the yen will continue for a while with a lag," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co.

Ideas:

In normal times a 22.1 increase in exports would look very good but of course the weak yen had something to do with it.

As there are always positives and negatives to a weak currency in this situation the weak currency has moved too far and has been more of a negative than a positive for the Japanese economy.

Energy and grain prices, and maybe other raw materials prices might have shown signs of stabilizing but that doesn't mean they are beginning to decrease.

The might have just reached a plateau and will remain at their present level for a while. And as the yen continues to weaken prices might continue to increase even though the energy and grain markets have stabilized for slowed down.

Article:

Russia's war on Ukraine has sent crude oil and other raw material costs surging. The yen's rapid weakening against the U.S. dollar has added to the woes of Japan as it inflates import costs.

The price of imported crude oil roughly doubled from a year earlier to 95,608 yen per kiloliter.

The yen has fallen sharply in recent months. It was down 22.9 percent from a year earlier at 135.08 versus the U.S. dollar in August, according to the ministry data.

Ideas:

The Ukraine situation didn't begin the increase in imports prices in Japan but it did seem to make it more worse. Inflation had been increasing slowly since the pandemic began but the war accelerated inflation globally.

The Bank of Japan still thinks inflation is going to be only a short-term temporary situation. But to be fair to the BOJ just what is short-term and what is temporary when there are households and companies suffering because of the weak yen or the surge in import prices.

The Bank of Japan might have some very good reasons for not interfering in the Japanese economy and or trying to manage inflation like the US and the EU is doing as there are some definite side-effects to increasing the key rate.

Just how much must the Japanese yen fall before the Bank of Japan does something to keep it from falling further.

But maybe the Bank of Japan sees or understands once it does start to increase the key rate, even slowly, there are going to be a wave of side-effects moving all through the Japanese economy and the BOJ and this time doesn't want to deal with the side-effects once they begin.

Article:

It traded in the 143 range on Thursday near a 24-year low, a day after caution grew about direct intervention by the government to prevent a further drop.

"The worry is that China's economy is slowing and the United States is also hit by the double whammy of inflation and rate hikes. This will slow Japanese exports to the major trading partners and the economy, too," Kodama added.

Economists expect the Japanese economy to continue growing in the July-September quarter as the impact of the COVID-19 pandemic wanes, but its pace will likely slow as domestic demand remains weak and accelerating inflation hits households.

Ideas:

Just what is direct intervention and how is the Japanese government or even the Bank of Japan going to do it exactly.

The Chinese economy is going to continue to slow as the covid policy will  continue to keep the economy in check and then the slow down in the global economy will have an effect too.

The US now is seeing the negative side-effect of the rate increases. The US Federal Reserve has admitted the US economy is going to have to slow down to see a decrease in inflation which means Japanese exports to the US might see a period of decline.

The Japanese economy will probably continue to increase but not at the the rate because of inflation and the weak yen which will slow consumer  consumer spending which will be the major factor that crowds out any real economic growth in the Japanese economy.

Households or consumer spending will continue to see a decline in their disposable income as home energy prices increase as supermarket prices increase along with many other items in the Japanese economy.

Article:

Strong external demand has boded well for Japan, boosting exports of cars, auto parts and other equipment. Helped by such items, Japan had a trade surplus of 471.5 billion yen with the United States.

Still, the pace of year-on-year growth was faster for imports than for exports with the United States, 40.5 percent to 1.07 trillion yen and 33.8 percent to 1.54 trillion yen, respectively.

However, with another major trading partner, China, Japan reported a trade deficit of 576.9 billion yen. Imports grew 34.2 percent to 2.19 trillion yen, helped by those of clothes, smartphones and televisions, outpacing a 13.5 percent gain in exports to 1.61 trillion yen, led by hybrid cars, audio equipment and others.

Ideas:

Strong exports to the US is very good but what is it going to look like in 2023 if there is a real recession in the US and consumer demand in the US weakens considerably.

If inflation and the weak yen continue in Japan it is not going to look so good for Japanese exports vs imports.

However, there are always positives and negatives to global trade, as with one country there might be a trade surplus and with another country there might be a trade deficit.

The trick of course is to be able to manage both a trade deficit and a trade surplus at the same time knowing that because of currency exchange rate differences not all is going to be equal all of the time.

Major export countries like Japan can't expect to have a trade surplus every month or even every year and there are always going to be external and internal challenges to importing and exporting, and as such companies and economies have to learn to adjust their strategies to best manage the challenges.

Article:

A trade deficit of 130.8 billion yen was reported with the European Union, lifted by cars and lumber.

Imports from the region fell 1.2 percent from a year earlier to 852.6 billion yen, compared with exports that grew 16.7 percent to 721.8 billion yen.

Ideas:

Just what does lifted by cars mean exactly. Does it mean the trade deficit could have been worse except for the the exporting of cars to the EU or does it mean there were a lot of cars imported to Japan from the EU.

Again exports and imports are not always linear meaning they can easily go up and down over time.

For example for the US Japan might see continued export growth, while for China a decrease in exports and for the EU some export growth. 

Most likely the Ukraine war might have had some effect on the decrease in imports from the region.

Have a nice day and be safe!

Japan Wholesale Prices:

 Article Source: https://mainichi.jp/english/articles/20220913/p2g/00m/0bu/057000c

Article:

TOKYO (Kyodo) -- Wholesale prices in Japan climbed 9.0 percent in August from a year earlier as the yen's tumble against the U.S. dollar and other major currencies boosted import costs, Bank of Japan data showed Tuesday.

It marked the 18th straight month of increase, lifting the corporate goods price index to 115.1 against the 2020 base of 100, renewing a record high, according to the central bank.

The surge has raised fears that recent price hikes by businesses may last in the long term, with consumers struggling to keep up with the rising cost of living as wages remain stagnant.

Ideas:

Wholesale prices will most likely continue to increase as long at the yen remains weak and the current trend of energy and raw materials costs continue to increase.

Japan is not alone as this seems to be very much a global situation even, if for example, the US dollar is strong, energy and raw materials costs continue to increase.

So even if the Bank of Japan does intervene and the yen does improve prices most likely will still be high but maybe not as high.

By this time, after 18 months if increases many if not all Japanease companies have decided to pass on some or all of their price increases. And as its been on going for now 18 months maybe some companies have passed on their costs more than once.

Even as Prime Minister Kishida has for the 3rd time asked companies to increase wages, most likely many companies might not be in the position to increase wages as their profit margins are thin or weak and or not where stockholders want them to be which seems to be a major consideration these day for many companies.

So consumers unfortunatley have to bear the brunt of the price increases and have to limit what they spend as their disposable income is now getting less each month.

Article:

Import prices in yen terms grew 42.5 percent, the fifth consecutive month that the margin of increase has surpassed 40 percent.

The Japanese currency hit a fresh 24-year low against the dollar last week, as the BOJ maintains its ultraeasy monetary policy in sharp contrast to the hawkish Federal Reserve, which has been raising interest rates to tame surging inflation.

Electricity, city gas and water prices surged 33.4 percent, while those of petroleum and coal products increased 15.6 percent. Steel prices rose 26.1 percent, and wood and lumber rose 20.2 percent.

Ideas:

A fifth consecutive month at 40 percent or more should be of concern to the Bank of Japan and the Japanease government but maybe the alternative for fixing or manging the situation has too many side-effects.

Some might say let the economy be natural and it eventually will fix itself naturally. Some might say there should be as much intervention as needed to manage the economy as it seems the economy it not able to fix itself naturally.

The bank of Japa must be weighing the costs and benefits of what to do and may feel at this time, as a weak yen helps exporters, is not willing just yet to increase rates as it might reduce the revenue of large exporters, and or there are too many side-effect that the Bank of Japan doesn't want to deal with.

The idea that increasing interest rates might take some time, as even the Federal Reserve has said the increased rates are not having any affect on inflation just yet.

As even as recently the Federal Reserve and others have admitted a major slow-down in the US economy and global economy might be the only real way to reduce inflation.

And on that maybe the Bank of Japan understands that a major slow-down in the Japanease might economy might be the only way to reduce inflation overall.

Article:

Japan has seen core consumer prices rise above the BOJ's target of 2 percent since April.

While export-oriented businesses, which have benefited from the weak yen, are under pressure to raise wages, the adverse effects of surging procurement costs may limit the change.

Ideas:

Many export companies are in a catch 22 situation meaning their energy and material costs keep increasing and at the same time their revenues from for example the US and the EU might be increasing.

So maybe many of them are not doing that good and still are unable to increase wages even if they want to.

And the same can be said for many Japanese domestic companies, who might not export, but have continous increases in energy and material costs, and their profit margins get thinner each month and each week.

And then there is challenges with housholds and energy costs and their energy costs continue to increase which means they have to limit the use of electricity, heating oil, which means now they have less and less disposable income.

Obviously the Japanese government and or the Bank of Japan just can't solve every economic challenge all at once as there are sometimes many side-effects and there are always positives or negatives to any and all economic actions.

So the Japanese government has to decide what is the best strategy to help households and at the same time find a strategy to help those businesses that really need help with the surge in energy and raw materials costs.

Have a nice day and be safe!

Japan GDP Growth:

 Article Source: https://mainichi.jp/english/articles/20220908/p2g/00m/0bu/026000c

Article:

TOKYO (Kyodo) -- Japan's economy grew an annualized real 3.5 percent in the April-June period, faster than the previously reported 2.2 percent, the Cabinet Office said Thursday.

Real gross domestic product, adjusted for inflation, expanded 0.9 percent on a quarterly basis, revised upward from an earlier reading of 0.5 percent. GDP is the total value of goods and services produced in a country.

The figure, higher than the average market forecast of a 2.9 percent increase, confirmed the third straight quarter of growth and the return of the world's third-largest economy to a pre-pandemic size.

Ideas:

While GDP growth might have been a real 3.5 percent it probably doesn't explain the real economy situation in Japan.

GDP is not perfect measurement of what is really happening as an economy is very complex and there are always companies and sectors who are doing better that what is shown and those how are not doing so well.

The same can be said for the popluation overall, in that some might be doing really good and some or many might be just getting by especially because of the inflation situation.

It should not be said that the Japanese economy has reached the pre-pandemic level just yet, unless some might say the Japanese economy even before the pandemic was not doing too good, as evidenced in late 2019 and early 2020 when consumer spending was still not doing so good because of the October 2019 sales tax increased from eight to ten percent.

Article:

Economic activity picked up in the April-June period, helped by the removal of anti-virus curbs that had weighed on demand.

Capital spending increased 2.0 percent, larger than the initially reported 1.4 percent, as a decline in COVID-19 cases has helped reduce uncertainty, prompting companies to step up investments.

Private consumption, which accounts for more than half of the economy, rose 1.2 percent, compared with 1.1 percent in the preliminary data.

Ideas:

Japan is still the 3rd largest economy in the world so even a 2.0 percent increase is a lot for Japan. 

But as inflation and the weak yen continue to cause challenges for the Japanese economy it remains to be seen if the business investment can be sustained for the long term.

Private consumption or consumer spending has always been the weak link for the Japanese economy even though its estimated to be more than half of GDP or half of the economy.

Private consumption might have increased 1.2 percent but also like business investment is it sustainable in the long term as the weak yen and continued inflation are definite challenges for the Japanese economy.

Not to be forgotten is the idea that many workers have not had a real wage increase for a very long time which means their purchasing power is becoming less each month as prices continue to increase which means they have less disposable income for extra spending in the economy.

Article:

Economists expect growth to continue in the coming quarters though at a slower pace, but a recent surge of coronavirus infections and higher inflation are clouding the outlook for the current quarter to September, even as the government is considering an additional relief package to soften the blow to consumers.

Unadjusted for inflation, nominal GDP grew at a revised, annualized rate of 2.5 percent in the reporting quarter, instead of 1.1 percent.

Ideas:

Economic growth, any growth, is still good even at a slow pace. as there are many challenges that can slow down or even cause growth to decline such as the weak yen, increased energy prices, increased raw material prices, and the decreasing purchasing power of consumers.

If the Japanese government is going to do some kind of relief package it has to be big enough to help as many families as possible. It it can be just a one-time 50,000 yen handout, as it needs to sustainable for the long-term as much as possible.

If companies are not going to do their part and increase wages then the government needs to step-in with some kind of program for the remainder of the inflation situation to help families and those who are not doing so good.

Japanese consumers have not seen or experienced this much inflation for a very long time, s maybe not since the boom times of the 1980's. So many, with no or little wage increases might not be doing too good right now.

And if your are a contract worker, part-time worker, on a fixed income it becomes even more challenging.
Have a nice day and be safe!

Japan Household Spending:

 Article Source:  https://mainichi.jp/english/articles/20220906/p2g/00m/0bu/020000c

Article:

TOKYO (Kyodo) -- Household spending increased a real 3.4 percent in July from a year earlier, helped by the lifting of COVID-19 restrictions that prompted a rise in recreational and dining expenditure, government data showed Tuesday, in a fresh sign of a gradual return to normalcy.

Average spending by households with two or more people stood at 285,313 yen ($2,031), up for the second straight month, but the figure was still lower than pre-pandemic levels, according to the Ministry of Internal Affairs and Communications.

Ideas:

Household spending or consumer spending has maybe been in a pent-up demand phase for a while as many households and or consumers delayed getting out and doing much.

The average level might not reach the pre-pandemic level for a while as there is still a large part of the Japanease economy that is still trying to recover from the pandemic period.

But at the same time, an economy is very complex and as such there are going to be many levels of positives and many levels of negatives for a while as all parts of an economy don't grow exactly in a linear line.

And as inflation continues to be a constant threat to the Japanease economy its going to drage down cosumer spending its not going to be a a peak level for some time.

Article:

Rising prices and a recent resurge in COVID-19 cases cast a pall over the strength of a recovery in private consumption, which accounts for more than half of the country's gross domestic product.

The impact of accelerating inflation is being increasingly felt, with separate data showing average real income dropped 1.3 percent in July from a year earlier. The figure was down for the fourth straight month, with the pace of decline quickening from 0.6 percent in June, in a trend that could dent spending appetite ahead.

Spending on recreation jumped 11.2 percent, helped by a rise in accommodation fees amid a recovery in demand for travel. Outlays on food items fell 1.3 percent, partly because more people dined out when compared with a year earlier when anti-virus curbs were in place.

Ideas:

Private consumption or consumer spending might be half the Japanease GDP but its far below many of the other advanced countries where its around 60 percent or more of GPD.

Some could say its just a cultural situation where Japan, for the most part, is not the free-spending economy like the US.

That would be a logical idea to consider, but if Japan really wants to see some real economic growth, something needs to improve, if possible, like an increase in wages.

But an increase in wages has been debated before in other economies and the idea sounds good but it really didn't increase consumer spending that much.

A combination of wage increases and productivity increases is probably what the Japanese economy needs to see some real economic growth.

Article:

Expenditures on furniture and household items dropped 5.6 percent from a year ago when demand for durables such as televisions was strong ahead of the Tokyo Olympics and Paralympics.

An increase in household spending bodes well for the economy, whose recovery from the COVID-19 fallout has so far been modest. Even though people have begun to spend more on eating out and drinking alcohol, the levels of such expenditures are still lower than before the pandemic in July 2019, the ministry data showed.

Ideas:

The level of consumer spending is probably going to remain below the pre-pandemic or the 2019 level for some time.

Until inflation slows down, until the pandemic is completely gone or people feel 100 percent safe things are not going back to the pre-pandemic level anytime soon.

There is also the possibility that the pandemic has completely changed the way people do things now. Maybe the pre-pandemic days of people doing what they did are not going to be the same now such as less people out and about compared to before.

For example there might be more families and whomever ordering online their food and or dinners instead of going out. There might be more online shopping than before and there might just be more be staying home instead of going out on the weekends.

There could be a complete or parital paradigm shift in how people think or do things compared to what they did in 2019.

Article:

Spending rose from a year ago but we will have to closely watch the impact of rising prices from now," a ministry official said.

The government has taken steps to soften the blow from rising energy and food prices to consumers, with an additional package expected to be unveiled later this week.

Ideas:

Spending might have increased from a year ago but it probably was not that big a deal as consumer spending was probably not so good a year ago, and not its just beginning to get back to some kind of normal or close to it.

The increase in prices is definitely going to have an impact on consumers and each consumer has their own level of elasticity related to prices, meaning some might feel the increase in prices is not a problem and for other even the slightest increase in prices might be a major problem for them.

For example what might have been a normal buying activity such as going to the local conbini and getting a bento for lunch might now be too much for some.

And or for example, stopping by Sogo or some other depato for a take out bento meal to take home might now be too much now.

The Japanease government always says its going to do something but its has to be sure what is does is citizen or consumer user or user friendly and not require too much paper-work and or not just a one-time subsidy handeout to help those in need.

Have a nice day and be safe!

Japanese Yen Challenges:

Article Source: https://mainichi.jp/english/articles/20220902/p2g/00m/0bu/019000c

Article:

TOKYO (Kyodo) -- The Japanese government warned Friday of fallout from the rapid depreciation of the yen after the currency slumped to a fresh 24-year low against the U.S. dollar, saying it is prepared to take "appropriate action" to bring stability in conjunction with monetary authorities in other nations.

Volatility in currency markets has been "increasing somewhat," Finance Minister Shunichi Suzuki said at a press conference, adding that the government is watching foreign exchange moves "with a heightened sense of vigilance."

Ideas:

Companies don't like volatility in the currenct markets has it would rather the markets be one way or another so they can prepare correcly if sudden changes to happen.

Also, some or many companies don't have the resources to leverage agaisn't too much weakening or too much strethening, like the large companies do.

Just the dumping of extra yen into the market and or currency swaps might not be enough to stabilize the market at this point.

At this point the Japanese market currency situation has become too much for some and unfortunately the best thing might be just the riding out the situation the thing companies can do.

Article:

"We have an agreement by the Group of Seven and others that excess volatility and disorderly movements in exchange rates can have an adverse impact on economic and financial stability," Suzuki said.

Aggressive interest rate increases by the U.S. Federal Reserve have weakened the yen against the dollar, as the Bank of Japan has stated it is not planning to change its ultralow rate policy. The Fed is expected to continue raising, putting further pressure on the yen.

The U.S. dollar was trading in the lower 140 yen zone on Friday.

Ideas:

The Group of Seven might say one thing but in reality the markets will continue to fluctuate as long as the US Federal Reserve continues to increase its rate and the Bank of Japan continues to keep its policy as is.

There is too much of a variance between the US dollar and the Japanese yen and as such there is will continue to weaken the yen over time, despite any attempts to dump yen into the markets or use currency swaps to stabilize the situation.

If there by some chance this is a game between central banks to see which is correct, it seems that the Bank of Japan or more importantly the Japanease economy and some Japanese companies are the losers in this situation.

But at the same time despite all of the US Federal Reserve increases have not really made that much of a dent yet in the inflation situation in the US.

So which strategy is correct in trying to manage inflation is still a question to be answered at this time.

Article:

A weak yen is a double-edged sword for Japan as it helps exporters by boosting their overseas profits when repatriated but it also inflates import costs for energy and other raw materials, a headache for resource-scarce Japan.

Japan's top government spokesman Hirokazu Matsuno reiterated that currency moves should be stable and reflective of economic fundamentals, adding, "Rapid fluctuations are undesirable."

The yen's breach of the psychologically important 140 line is seen by some currency market analysts as a sign further falls could follow, with U.S. economic data coming into sharper focus for any clues to the pace of further rate hikes by the Fed.

Ideas:

The Bank of Japan of course knows that a weak currency is good for Japanese exporters as it brings more yen into the Japanese currency account.

So most likely the Bank of Japan has taken cost/benefit approach meaning it sees the benefit for the exporters as a better choice at this time instead of trying to increase rates to make the yen equal or somewhat equal to the US dollar.

At some point, say at 145 or even 150 for the yen the Bank of Japan might begin to signal enough is enough and start to make some changes.

Again too many fluctuations are not good for companies as they need to time to protect themselves against the rapid changes in a currency.

If the yen would remain at 140 and not change again for a while companies could then make the changes needed in the markets and the economy to better help their situation.

But sudden or continous changes don't help companies as they don't have the resources to change everytime the currency markets change.

Have a nice day and be safe!

Japan's Industrial Output:

 Article Source: https://mainichi.jp/english/articles/20220831/p2g/00m/0bu/029000c

Article:

TOKYO (Kyodo) -- Japan's industrial output in July grew 1.0 percent from the previous month for the second consecutive month of increase, helped by the easing of parts shortages following the relaxation of COVID-19 restrictions in China, government data showed Wednesday.

The seasonally adjusted index of production at factories and mines stood at 97.1 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. The climb followed an upwardly revised increase of 9.2 percent in June.

The ministry kept its output assessment from the previous month, with "fluctuates indecisively" reflecting the ups and downs in production in recent months.

Ideas:

There are going to be ups and downs for a long time as the after affects of the pandemic situation including parts shortages and the China situation is going to linger for a while.

Until the global economy can eventually get back to some kind of normal or even some kind of new normal there are going to be ups and downs more than the usual seasonal fluctuations before the pandemic.

Parts shortages and all that is related to them might be the norm for the time being. And add in the constant inflation situation and this might be the new normal that industry and business have to factor in to their plans for the future.

Article:

Of the 15 industries covered by the survey, six logged output increases and eight declined. Pulp and paper output remained flat.

By sector, the auto industry saw the biggest increase of 12.0 percent from the previous month, led by the manufacturing of passenger and compact cars, with the ministry attributing the growth to the easing of parts shortages after the lifting of coronavirus lockdowns in China in June.

Other industries reporting output rises included general-purpose and business-oriented machinery, up 8.6 percent, and production machinery, up 5.9 percent.

Ideas:

An economy is very complex and it is never in a linear upward growth for all industries. Even in the best of times there are going to be some that show positive growth, some that show some but minimal growth, and some that show no growth at all.

China might have lifted the lockdowns is some areas or parts of China but it has a long way to go before China gets back to any kind of normal. The problem tomorrow is it could be back in lockdown again and again companies that depend on parts from China are now back in the same situation as before.

Until China ends is zero policy all companies globally will be subject to the same problems each time that a certain part of China goes into lockdown again.

Article:

Among industries seeing output declines, electronic parts and devices, including memory chips, dropped 9.2 percent. Chemicals, excluding inorganic, organic chemicals and medicines, fell 4.9 percent, and iron, steel and non-ferrous metals decreased 1.6 percent.

The index of industrial shipments rose 1.6 percent to 95.2, while that of inventories remained flat at 99.6.

Based on a poll of manufacturers, the ministry expects industrial output to grow 5.5 percent in August and rise 0.8 percent in September.

Ideas:

Electronic parts and devices are still part of the global problem of the continued chip shortage sitution. One German car executive said the situation could last one more year.

So how did it get this way and why? One can blame the pandemic and the production shutdowns that slowed down the production and the back-log of shipping related to the products.

Some might say the sudden surge in demand for chips related to all products and companies have not been able to meet demand.

Some might say the shortage of the rare-earth materials needed for chip manufacturing as the main problem.

Some of course would say a combation factors that all came together at the perfect time to create a perfect storm globally that caused the chip shortage

Whatever the reasons the chips shortage is not going away any time soon and companies need to adjust, find new sources of materials and so on.

Have a nice day and be safe!