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    Home » Lexus confronts chip shortage crunch: Production woes revealed
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    Lexus confronts chip shortage crunch: Production woes revealed

    By Miurio HuangJuly 5, 2024Updated:September 4, 2025No Comments2 Mins Read
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    • Lexus small parts sit inside almost every modern system, from how the engine runs to how the screen in the cabin works.
    • The shortage has also dragged down Lexus’s sales and left some buyers facing long waits.

    The global chip crunch has rippled through many sectors, closing production lines and causing delays across manufacturing. Lexus, despite its image as a luxury brand, has been caught in the same problems as the rest of the industry.

    As car demand picked up after the pandemic, the lack of electronic parts became a major obstacle for Lexus and its parent company, Toyota.

    Production disruptions and supply chain challenges 

    Lexus has had to rethink its output as chips remain in short supply.

    Because so many key functions depend on semiconductors, the company has shuffled its plans — building popular models first while pausing less important ones. Some launches have been delayed, and production of certain lines has been temporarily halted.

    The result is slower factories, fewer cars at dealers, and longer waits for customers. The shortage has shown just how exposed automakers are to global supply problems and why spreading suppliers is now a serious priority.

    Also read: SK Hynix will invest $75B in AI and chips by 2028

    Also read: How Nvidia dominates the AI chip market

    Impact on sales and customer experience 

    Dealers are struggling with limited stock. Buyers often wait weeks or months for deliveries. Popular models may be sold out, and in some cases prices are higher because discounts have been cut.

    The shortage has also forced Lexus to hold back certain features that depend on chips. Customers expecting advanced options sometimes find them missing. For a brand that sells itself on reliability and service, clear communication has become vital to keep trust.

    Strategies and future outlook 

    Lexus is giving priority to profitable models and to markets where demand is strongest. It is also sourcing from new suppliers and making production changes to stretch existing chip supplies.

    Longer term, Lexus and Toyota are studying designs that need fewer chips. But with supply still under pressure worldwide, a quick recovery is unlikely.

    The crisis has forced Lexus and its peers to rethink supply chains. Building flexibility and finding backup sources are now seen as essential for the industry’s future.

    EV Lexus Toyota
    Miurio Huang

    Miurio Huang is an intern news reporter at Blue Tech Wave media specialised in AI. She graduated from Jiangxi Science and Technology Normal University. Send tips to m.huang@btw.media.

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