Japan's Subaru Corp slashed its annual production target by nearly 10% on Wednesday citing that the impact of a shortage of semiconductor chips hampers the global automaker's growth. The automaker said shortages of parts for immediate delivery in the spot market are prominent, and the supply shortage is not expected to resume until at least June.

Subaru Corp said it expects to produce 880,000 vehicles in the 2022 fiscal year that ends in March, down 9.3% from its previous forecast of 970,000 vehicles.