Horror Forecast Suggests Carmakers Should Just Use Fewer Chips

Carmakers are investing in the manufacturing of chips to address the inventory crisis 6 photos
Photo: General Motors
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The impact of the chip shortage on the automotive industry has been painful, to say the least, with carmakers out there forced not only to temporarily halt the production at their factories but also to launch vehicles without certain systems.
This shows just how hard it’s been for automakers to reduce the disruptions caused by the chip shortage, and unfortunately, there’s a chance this struggle wouldn’t come to an end too soon.

While some industry analysts believe the lack of semiconductors would slowly recover throughout 2022 before the inventory returns to normal in 2023, a consultancy firm believes this is unlikely.

Roland Berger has recently been quoted as saying in an analysis that the chip nightmare would continue in 2022, estimating the constrained inventory is here to stay even in the long term. In other words, while the crisis will ease off at some points in 2022 and 2023, this doesn’t necessarily mean this problem would be gone for good.

The consultancy firm also knows how another devastating wave of the chip shortage could be prevented: carmakers just need to use fewer semiconductors by giving up on some high-tech parts.

Because chipmakers themselves aren’t necessarily willing to invest more in capacity given the automotive chips use an old design, car manufacturers need to turn to other solutions. These include giving up on some high-tech components and investing more in new-gen designs that would align this industry with other sectors that have already completed the transition.

The good news is that carmakers are already exploring a new strategy in the long term, and some are now planning to invest in the production of chips themselves.

Despite the different forecasts, the consensus seems to indicate that 2022 is expected to be another year of struggle in terms of the chip inventory, so it remains to be seen just how big the impact is going to for the production of new vehicles.
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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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