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Tech Giant Makes the Obvious Prediction About the Chip Shortage

It's all but official now: the chip shortage won't be over in 2022 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
We can all see what the chip shortage has done to the automotive industry, and unfortunately, carmakers out there no longer seem to be very optimistic the nightmare could end soon.
Ford, for example, has recently decided to suspend the production at several North American plans, with the assembly lines of several popular models, including the Mustang and the F-150, therefore idled.

This shows just how awful the impact of the chip shortage continues to be in this industry, so without a doubt, the question on everyone’s lips is when exactly this nightmare is supposed to end.

Unfortunately, nobody knows for sure, especially as the lack of semiconductors is also strongly related to the global health issue that’s still causing so many problems across the world.

The CEO of AMD, one of the biggest names in the tech giant, believes the chip crisis wouldn’t come to an end this year. However, a slight recovery will still be recorded in the second half of the year, but this wouldn’t by any means represent the end of the constrained inventory.

Speaking on Yahoo Finance Live, Dr. Lisa Su obviously tried to sidestep the question and avoid providing an estimate as to when the global chip inventory could return to normal. And this isn’t by any means a surprise, as Su clearly doesn’t want to make a guess due to the reasons mentioned above.

However, if Su is right, then the car production should gain more pace in the coming months. If anything, the chip inventory could improve in the first months of 2023, especially thanks to the investments in production capacity.

As far as carmakers are concerned, some of them are trying all kinds of approaches to deal with the limited supply. Hyundai, for instance, wants to use home appliance chips, which aren’t necessarily in strong demand right now, on cars, as their design could allow the installation on non-critical systems such as lights.
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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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