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Nissan to Close Tenn. Plant for 2 Weeks Due to Chip Shortage

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August 12, 2021—Nissan will close its Smyrna, Tenn., production plant for two weeks starting Aug. 16 due to the ongoing semiconductor chip shortage.

The shutdown, among the longest at any U.S. plant since the shortage began, was prompted by a COVID-19 breakout at a chip factory in Malaysia according to a report from the Associated Press. Though the shortage has improved over the past few weeks, outbreaks of the new delta variant are threatening that progress.

“It’s looking like it’s going to stretch at least into the new year,” Guidehouse Research Principal Analyst Sam Abuelsamid said. “

The factory employs 6,700 and produces six Nissan models. It is expected to resume production on Aug. 30. 

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