Nissan Has Bad News for People Thinking the Chip Shortage Is Nearing Its End

Nissan says it's impossible to anticipate the impact of the new Omicron variant 6 photos
Photo: Nissan
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Industry analysts believe the chip shortage is slowly but surely nearing its end, and while some anticipate a slight recovery to normal levels in the first half of 2022, others believe the whole thing would be over in 2023.
Unfortunately, Nissan’s boss Makoto Uchida has decided to step in and settle this dispute with a not-so-fast kind of statement that’s definitely bad news for pretty much everybody.

And it’s all because Uchida doesn’t expect the chip shortage to come to an end too soon, explaining in a statement for the BBC that offering an ETA as to when the chip shortage would be over and normal deliveries would be back is pretty much impossible.

In case you’re wondering why the chip situation isn’t recovering, the answer is as simple as it could be. The health crisis that isn’t going anywhere and the new variant that’s likely to generate a new wave of restrictions all over the world are seen as the main reasons the production of cars would continue to struggle for longer than initially anticipated.

You don’t have to be a rocket scientist to anticipate more chip struggles caused by the variant first detected in South Africa. Foundries across the world could once again be hit by restrictions and lockdowns, with the supply chain to then face new disruptions that would eventually impact the chip inventory.

Nissan can’t provide an ETA as to when the production of cars could return to pre-pandemic levels, but market research firm IDC has recently warned the world could soon face another problem.

If foundries across the planet keep investing in manufacturing capacity, the majority of industries could end up struggling with an oversupply of chips, simply because the production would be much higher than the demand.

Until this happens, however, carmakers continue the fight with the ongoing crisis, and unfortunately, the solution most come down to is selling cars without certain systems.
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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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