The global chip shortage seems to be spreading to truckmakers.

Shares in Sweden's AB Volvo tumbled on Tuesday (March 23), falling around 7%.

That after it said the silicon drought left it facing a big hit to production in the second quarter.

Volvo says it's cut output at plants in Belgium and Brazil.

Deutsche Bank analysts estimate it will make about 16,000 fewer trucks over the period.

Other analysts put the hit to earnings at over 400 million dollars.

Volvo says it now has little visibility into the chip supply issues.

It predicted the shortage would start to hit other areas of the group's business.

Semiconductors have been running short as consumer electronics brands mop up available supply amid booming demand.

Chipmakers prefer supplying Apple, Samsung and the like, as they buy more advanced, higher-margin chips.

Car brands including Ford, Volkswagen and Honda have all suffered hits to production as a result.