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Don’t Hold Your Breath for the End of the Chip Drama, Top Auto Supplier Says

As if it’s not already obvious, dealing with the chip shortage isn’t something that can happen overnight.
Carmakers will continue to struggle with chip issues 6 photos
Photo: Daimler
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The entire world has been struggling to find a way to reduce the disruptions caused by the constrained chip inventory for more than a year, and yet, here we are with carmakers still selling cars without certain non-critical systems and temporarily halting the production at some plants.

Many believe the chip shortage could come to an end – or, at least, ease off – in the second half of this year. Industry analysts also predicted a significant improvement in the global chip inventory towards the end of the year.

But Bosch doesn’t seem to believe this is going to happen. Speaking with Automotive News, Bosch chairman and CEO Stefan Hartung has nothing but horrible news for those who hoped to see the chip crisis coming to an end sooner rather than later.

Hartung doesn’t believe the semiconductor nightmare would come to an end earlier than 2023 – in fact, he says late 2023 is the time when we should be able to predict the path of the crisis more accurately, so there’s a chance the disruptions would continue for a little longer.

The Bosch CEO, however, seems to be very confident that the lack of semiconductors would continue to be a big headache for the automotive industry through 2023, despite all the investments in capacity. He does expect Bosch to be part of more partnerships, but on the other hand, the industry will have to wait until 2023 to figure out how the chip inventory can be stabilized in the long term.

Tech giant Intel has recently shared a similar forecast, predicting that the constrained inventory would continue to be a problem in the car production business until 2024. The company, however, admitted that some industries may see signs of recovery earlier.
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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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