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Hyundai Has No Good News About the Chip Shortage

The chip shortage continues to be one of the biggest headaches for carmakers around the world, and while some expect the semiconductor inventory to improve in the second half of the year, others are a lot more pessimistic.
Hyundai says it's hard to tell when the chip inventory could improve 9 photos
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Hyundai, for example, doesn’t seem to believe that any substantial recovery is possible this year, as predicting when exactly the shortage could ease off is “very difficult.”

These are the words of Tarun Garg, director, sales, marketing & service, Hyundai Motor India, who has recently revealed that locally, the carmaker has no more no less than 135,000 pending bookings. Increasing production is obviously a priority right now, but the chip shortage makes it impossible to build cars at the desired pace.

Indeed, if we are to trust chipmakers themselves, predicting when the chip shortage could come to an end is a risky guessing game.

Intel, which is one of the biggest names in this industry, doesn’t believe anybody should hold their breath for the end of the crisis. And unfortunately, the company has a rather gloomy forecast, as it believes the tight inventory wouldn’t be resolved in full until 2024, at the earliest.

The reasoning pretty much makes sense. While chipmakers are investing big in expanding their production, and new facilities are scheduled to start operations in late 2022 and in 2023, they are now battling another major problem: the lack of equipment required for the actual manufacturing of chips.

Intel says all the problems that the world is dealing with, including not only the lockdowns still happening in some parts of the world, such as China but also the geopolitical tensions in Europe, are making it very hard for the necessary chip production equipment to be built.

In other words, chipmakers don’t have the machines to build semiconductors, and their suppliers are facing other shortages that cause massive delays in the shipments of these machines. As a result, Intel says the chip shortage would persist until at least 2024.


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