Photo: Stellantis
The chip shortage emerged in 2020 as a new problem for the modern world and obviously as a consequence of the health crisis that took the planet by surprise.
As millions of people started working remotely, the demand for devices like PCs, tablets, and smartphones went through the roof, with these markets reaching record sales.
As a result, the global chip inventory became extremely constrained, with several other industries, including the automotive sector, struggling with a shortage that severely impacted their daily production.
Most companies expected the chip shortage to come to an end by the end of the year, but all of them learned quite quickly this wouldn’t happen. Analysts projected a return to pre-2020 levels at some point in 2021, but once again, this didn’t materialize. And here we are today with the chip crisis still around, and once again, all the predictions that a substantial recovery would be recorded by the end of the year are about to prove inaccurate.
Back in September, General Motors came up with a forecast that nobody was happy to hear: the chip shortage would continue until 2023 and even “beyond.” These were the words of the company’s CEO, and of course, they painted a grim picture of the automotive market.
Now another carmaker suggests this is very likely to happen. Stellantis CEO Carlos Tavares has recently been cited as saying that the chip shortage wouldn’t come to an end until at least 2023. He believes the inventory would remain constrained until the end of 2023, and the crisis will then “ease a little.” In other words, we can’t expect car production to come back to normal earlier than 2024.
Tech giant Intel has recently released a similar prediction, explaining that the chip shortage can’t be resolved in full until 2024, at the earliest.
As a result, the global chip inventory became extremely constrained, with several other industries, including the automotive sector, struggling with a shortage that severely impacted their daily production.
Most companies expected the chip shortage to come to an end by the end of the year, but all of them learned quite quickly this wouldn’t happen. Analysts projected a return to pre-2020 levels at some point in 2021, but once again, this didn’t materialize. And here we are today with the chip crisis still around, and once again, all the predictions that a substantial recovery would be recorded by the end of the year are about to prove inaccurate.
Back in September, General Motors came up with a forecast that nobody was happy to hear: the chip shortage would continue until 2023 and even “beyond.” These were the words of the company’s CEO, and of course, they painted a grim picture of the automotive market.
Now another carmaker suggests this is very likely to happen. Stellantis CEO Carlos Tavares has recently been cited as saying that the chip shortage wouldn’t come to an end until at least 2023. He believes the inventory would remain constrained until the end of 2023, and the crisis will then “ease a little.” In other words, we can’t expect car production to come back to normal earlier than 2024.
Tech giant Intel has recently released a similar prediction, explaining that the chip shortage can’t be resolved in full until 2024, at the earliest.
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