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Mercedes Doesn’t Surprise Anyone With Its Chip Shortage Prediction

Depending on who you ask, the chip shortage could come to an end either this year or at some point in 2023. On the other hand, there are a bunch of super-pessimistic industry experts and analysts who believe the crisis would continue for at least two more years, which means the struggle wouldn’t be over until at least 2024.
Mercedes doesn't think the chip shortage will end this year 50 photos
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In the meantime, carmakers are working around the clock on the only thing they can do: reduce the disruptions caused by the lack of semiconductors and make sure they produce and sell as many cars as they can.

Mercedes, for example, confirmed recently it’s still struggling to cope with the chip shortage, explaining that its profit could go down this year due to the very same reason.

However, the company has one very simple estimate: the chip shortage would continue throughout 2022, and while some signs of recovery would eventually be recorded towards the end of the year, this isn’t by any means the end of the crisis.

Nobody knows for sure when the nightmare could be over, and Mercedes doesn’t even try to guess. This makes perfect sense anyway, especially as the chip shortage is strongly tied to the existing health issue that keeps causing problems across the world.

Then, the ongoing crisis in Ukraine is also raising particular challenges in terms of the supply chain, so overall, it’s almost impossible to correctly predict when the semiconductor shortage could come to an end.

In the meantime, chipmakers across the world continue to invest in capacity, and this could eventually prove to be a double-edged sword. Market analysis firm IDC believes there will be a time when all these investments would lead to an oversupply of chips, meaning these companies could end up building more semiconductors their clients need. When this is going to happen, however, is something that nobody knows for sure either.
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About the author: Bogdan Popa
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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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