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China Has Terrible News About the Chip Shortage

The chip shortage has become one of the biggest problems for carmakers across the world, and while some companies seem to be confident that a more or less substantial recovery would happen in late 2022, others are a lot more pessimistic.
The production of cars has been heavily affected by the lack of chips 6 photos
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Unfortunately, the last few weeks have brought all kinds of negative signals that the end of the chip crisis isn’t anywhere on the radar for now, and Chinese companies seem to fully agree with this scenario.

Just like the rest of the world, carmakers in China are also facing a very painful lack of semiconductors, but as compared to optimistic companies like Ford, local firms don’t believe a significant recovery is possible in the short term.

Yuan Feng, who is the general manager of GAC Capital, the investment unit that’s part of state-owned Guangzhou Automobile Group, also known as GAC, reportedly believes that the chip crisis wouldn’t be over until 2023 or even 2024.

The shortage could therefore continue for two more years, especially as the world is now facing other problems like the geopolitical tensions in Europe and the lack of other materials. Furthermore, chipmakers themselves are battling a severe shortage of components for the machines they use to build chips.

Intel, which is one of the biggest names in the chip-making industry, has previously said that some business sectors would continue to struggle with a constrained semiconductor inventory until 2024. The company explained that partly to blame for the extended shortage is the lack of machines required in the process of chip manufacturing.

In their turn, the companies that are building the machinery used in the production of chips, including laser systems, are struggling with a lack of materials and components.

In other words, pretty much everybody in the industry is facing a shortage of some sort, so the end of the chip crisis happening in 2024 isn’t by any means as impossible as it sounds.


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