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Not Even the U.S. Government Can Raise Our Spirits on the Chip Shortage

The world is still battling the insane chip shortage, but depending on who you ask, the whole thing is about to either get a lot worse or improve significantly towards the end of the year.
General Motors is one of the companies impacted by the chip shortage 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
While Intel, for instance, is warning that the chip shortage wouldn’t go away until 2024, Ford expects the second half of this year to produce a substantial improvement in terms of inventory, therefore allowing for an important production boost.

But on the other hand, not even the United States expects the semiconductor struggle to end too soon.

U.S. Commerce Secretary Gina Raimondo has recently shared a gloomy forecast on this front. After meeting with a series of chipmakers as part of a trip to Asia, Raimondo warned that the consensus is the chip shortage would continue into 2023 and could even extend into the first months of 2024.

In other words, Intel might be right, and the world is indeed only halfway through the semiconductor crisis.

Raimondo used this occasion to also call for Congress to pass the necessary legislation that would support the local production of chips.

The Commerce Secretary warned that companies like Samsung and Intel could end up investing in facilities overseas unless subsidies are offered, and for the United States, this could be a major hit both in the short and the long term.

The local production of cars has been impacted massively by the lack of semiconductors, with giants like Ford and General Motors suspending their production lines temporarily on several occasions. All are working on various fronts and trying out several approaches to reduce the disruptions to their daily operations and eventually ship cars to dealerships in a timely manner.

Ford, for example, is trying to prioritize the production of vehicles that are in hot demand, therefore reducing waiting times for those models that bring home the bacon.
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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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