BOJ policymaker warns of global impact from chip crunch, Asia factory closures

• A shortage of semiconductor chips may persist for the rest of this year if the coronavirus pandemic keeps Southeast Asian factories shut, a Bank of Japan policymaker said, highlighting supply constraints as among key risks to the global economy.
• BOJ board member Toyoaki Nakamura said Japan's economy is expected to recover as the pandemic's impact fades, pointing to the boost to growth from robust global demand and a recovery in capital expenditure.
• "If the pandemic suspends chip production in Southeast Asian factories, that will emerge as a source of uncertainty for the global economy," Nakamura told an online news conference on Wednesday. "The chip crunch may not be fixed for the rest of this year."
• Carmakers worldwide have been cutting production due to the months-long chip shortage. A resurgence in COVID-19 cases in Japan, the Philippines, Thailand, Vietnam, and Malaysia - home to auto factories and chip plants - have led to stricter curbs and compounded the crisis.

(Source: Reuters)