Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Swedish truck manufacturer, Scania will cease production at its European plants this week as a result of the global semiconductor shortage.


The company will pause production at its Sweden, France, and Netherlands plants for the whole week, which will temporarily reduce its production volume. Karin Hallstan, Scania’s press chief added that its South American plants will also halt production next week. 


Over the past year, the global chip shortage has forced many automakers to reduce production volumes. According to a survey done by Silf, 16pc of companies have adjusted production plans for the next six months. 


Shortage and new deals

In light of this issue, Nvidia intends to seek EU antitrust approval for its $54bn acquisition of British chip designer, Arm in early September.  According to media reports, this request will prompt a 25-working day preliminary review and subsequently a 90-working day EU investigation.


The company will possibly not meet its previously scheduled March 2022 deadline for closing the deal as a result of the hesitancy in considering the case until after summer.  


Nvidia, the largest graphic and Al chip manufacturer, received backlash from the semiconductor industry after its announcement of the deal last year. The company, however, stated that it has gained support from Arm customers Broadcom, MediaTek, and Marvell.


Nvidia believes that the transaction will be beneficial to Arm, its licensees, competition, and the industry and added that they are working through the regulatory process and are open to addressing any concerns from the European Commission. 

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