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Continental Says We Won’t Feel Any Chip Shortage Improvement Until Next Year

If you’re trying to get an accurate forecast on the end of the chip shortage, it all depends on who you ask.
Continental expects chip inventory improvements this year 6 photos
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Right now, opinions seem to be divided into two different groups.

First of all, there are companies who believe that the global chips shortage wouldn’t come to an end until late 2023 or even 2024, all due to various other problems, such as the shortage of chip manufacturing equipment.

At some level, such a timeline makes perfect sense, especially given the current struggle with lockdowns and government restrictions in China, as well as the geopolitical tensions on the Old Continent.

And second of all, some companies believe we’ll see some improvements in terms of global chip inventory later this year, with things to return to normal in 2023.

Continental is part of this group, as Chief Executive Nikolai Setzer has recently been quoted as saying to shareholders that the chip crunch would ease off in the last months of this year. However, while the semiconductor inventory is going to improve globally, this doesn’t necessarily mean that we, the consumers, will feel any change.

Not really, Setzer claims. The global chip inventory improvements would only be able to produce notable differences for the end market next year, when the product availability should eventually be resolved.

Of course, it’s important to keep in mind that Continental’s timeline is just a prediction that could very well prove to be inaccurate.

Intel, which is one of the largest names involved in the semiconductor market (so in theory, it knows precisely how the market is evolving), claims the industry is now facing another problem: a shortage of chip manufacturing equipment, and this could lead to more production problems in the long term.

The consensus right now seems to suggest that the production of cars would accelerate in the second half of the year, but the uncertainty still looms over the chip inventory levels throughout 2023.


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