Chip Shortages Still Plague Toyota, Some Other Auto Makers

TOKYO--Overall demand for semiconductors may be softening, but the world's biggest auto maker says it still can't get its hands on enough chips. Toyota Motor Corp. on Tuesday lowered its Toyota and Lexus production target for the current fiscal year through March to 9.2 million units from a previous goal of 9.7 million, citing the risk of chip-supply issues. The situation reflects prolonged underinvestment in certain older types of chips that are particularly needed by car makers. While slowing demand for smartphones and personal computers has eased shortages of memory and other chips and sparked fears of a glut, pockets of constrained supply remain. Analysts and chip executives say the supply-demand mismatch could drag on for years.