China is hoping to be able to produce 70% of the semiconductors it needs by 2025, as it tries to cut reliance on overseas manufacturers. (Source photo by Reuters)

Structure of chip industry hinders supply chain recovery

Over-reliance on Asia has led some companies to repatriate production

EIKI HAYASHI, KAZUYA MANABE and HIDEAKI RYUGEN, Nikkei staff writers

May 4, 2021 11:00 JST

Tokyo -- Despite a steep rebound in automobile demand, production has been hampered by problems in the semiconductor supply chain which is still struggling to return to full capacity after battling a pandemic, natural disasters, accidents and trade tensions.