Photo: Ford
More and more people expect the chip shortage to come to an end this year, especially as the demand for certain electronics, including PCs and smartphones, is dropping.
Carmakers, on the other hand, seem to be rather cautious when it comes to anticipating the end of the chip crunch. Earlier this month, Toyota released its 2023 production target, explaining that while it hopes to build 10.6 million vehicles, the numbers could drop by as much as 10 percent due to the limited chip supply.
Ford is one of the companies that have already warned 2023 would end up becoming a difficult year from a chip inventory perspective.
The company’s CFO John Lawler said in late 2022 that the constrained inventory is likely to persist this year, suggesting that production challenges would stick around for a little longer.
Now Ford Pro CEO Ted Cannis shares a more optimistic message, admitting in a statement at the Evercore Utility Conference that “the situation remains tenuous.”
Cannis says Ford expects the chip crisis to ease off this year, but on the other hand, it’s way too early to celebrate the end of the shortage. The Ford executive explains that the chip situation will “get a little better this year,” but at the same time “it’s still an ongoing issue.”
In plain English, the chip inventory does show some signs of recovery, but at the same time, the uncertainty caused by rising inflation and skyrocketing material prices can still impact the supply chain.
Anticipating the end of the chip shortage is pretty impossible at this point, and tech giant Intel has recently warned that what the world needs to do first is to address the cause of the crisis. The company’s CEO explained that the semiconductor crunch was the result of the entire planet relying mostly on Asian production power, whereas plants in the United States and Europe were responsible for just a small part of the global chip output.
Asia currently controls 80 percent of the chip manufacturing industry, while both the United States and Europe produce the remaining 20 percent. Intel, therefore, calls for continued investments in chip production in these markets, especially as the top players in the chip sector are trying to expand to new regions.
Intel is one of the companies that are currently working on setting up new plants, both in the United States and Europe. The firm previously warned that the chip shortage wouldn’t come to an end earlier than 2024, especially as the new facilities wouldn’t start making semiconductors earlier than two to three years after the work on new plants kicks off.
Ford says the demand for new vehicles is still strong, and given the difficult chip market, there’s a chance we’ll have to live on with ridiculous waiting times for one more year.
Ford is one of the companies that have already warned 2023 would end up becoming a difficult year from a chip inventory perspective.
The company’s CFO John Lawler said in late 2022 that the constrained inventory is likely to persist this year, suggesting that production challenges would stick around for a little longer.
Now Ford Pro CEO Ted Cannis shares a more optimistic message, admitting in a statement at the Evercore Utility Conference that “the situation remains tenuous.”
Cannis says Ford expects the chip crisis to ease off this year, but on the other hand, it’s way too early to celebrate the end of the shortage. The Ford executive explains that the chip situation will “get a little better this year,” but at the same time “it’s still an ongoing issue.”
In plain English, the chip inventory does show some signs of recovery, but at the same time, the uncertainty caused by rising inflation and skyrocketing material prices can still impact the supply chain.
Anticipating the end of the chip shortage is pretty impossible at this point, and tech giant Intel has recently warned that what the world needs to do first is to address the cause of the crisis. The company’s CEO explained that the semiconductor crunch was the result of the entire planet relying mostly on Asian production power, whereas plants in the United States and Europe were responsible for just a small part of the global chip output.
Asia currently controls 80 percent of the chip manufacturing industry, while both the United States and Europe produce the remaining 20 percent. Intel, therefore, calls for continued investments in chip production in these markets, especially as the top players in the chip sector are trying to expand to new regions.
Intel is one of the companies that are currently working on setting up new plants, both in the United States and Europe. The firm previously warned that the chip shortage wouldn’t come to an end earlier than 2024, especially as the new facilities wouldn’t start making semiconductors earlier than two to three years after the work on new plants kicks off.
Ford says the demand for new vehicles is still strong, and given the difficult chip market, there’s a chance we’ll have to live on with ridiculous waiting times for one more year.
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