In company news, Chinese electric vehicle maker Nio (NYSE:NIO) became the latest casualty of the global chip shortage. NIO said it would suspend production for five working days because of a lack of chips, joining other automakers that have had chip issues. Now that automotive demand is heating up along with the economic recovery, car manufacturers like General Motors (NYSE:GM), Ford (NYSE:F), Honda (OTC:HNDAF) and Toyota (NYSE:TM) have warned the chip shortage is holding up production.

Why is that the industry could not project the total demand and invest in capacity building before the crisis?