Chip Makers Finally Share Some Good News for Car Manufacturers

The chip shortage remains one of the biggest concerns for automakers worldwide, and in the last few months, many of them have been forced to turn to painful decisions related to production operations.
The production of cars should record a slight recovery this quarter 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
Due to the disruptions caused in the supply chain by the lack of chips, carmakers temporarily halted the production at some of their plants, while others continued to make vehicles without certain systems like touchscreens, heated seats, and others.

All of these show the chip shortage is a nightmare that just doesn’t come to an end, though on the other hand, it looks like December is about to bring us the best news of the year regarding this never-ending saga.

A recent report from Taipei indicates that five major companies producing chips for the automotive industry confirmed increasing inventories in the last two months. In plain English, Renesas Electronics, NXP Semiconductors, Infineon, STMicroelectronics, and Texas Instruments are all making more chips, and this gives carmakers more time to prepare for the next wave of the crisis.

Because yes, everybody expects a new wave to happen in the first months of 2022, so while the increasing chip inventory is good news right now, carmakers still expect the shortage to return at full speed rather sooner than later.

Nobody knows for sure when exactly the chip shortage is supposed to come to an end, though some predict more solid signs of recovery should be recorded by this time next year. Others, however, expect the struggle to continue even in 2023, yet right now, it looks like it all depends on how the world manages to deal with the health crisis in the short term.

At this point, however, it’s pretty clear automakers are treating even the good news like this with extra caution. It’s hard to anticipate when the next wave of the crisis strikes, but hopefully, the increasing inventory would allow the industry to cope with it without substantial disruptions.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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