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The Big Lesson Car Companies Learned Due to the Chip Shortage, According to Top Chipmaker

The chip shortage has wreaked havoc in the automotive industry, and unfortunately, it continues to do the same thing, even two years after the first inventory problems started to show up.
Carmakers have been hit hard by the chip crisis 6 photos
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Furthermore, there are no signs that the constrained supply would be resolved anytime soon, and now carmakers expect the chip shortage to continue not only in 2023 but even beyond the next year.

Qualcomm, which is one of the world’s leading chipmakers, says there’s actually a positive side to the crisis. The shortage and the impact it had on almost every single industry sector out there proved chips are essential for everything these days, and handling inventory in a more effective manner is something that all companies should do.

Carmakers have often been accused of working with live semiconductor stock before 2020, therefore avoiding creating inventory and transferring the risk of overcapacity to chipmakers themselves.

In the last two years, however, building stock was no longer possible because of the insane semiconductor demand, so many car manufacturers started considering alternative backup plans in the long term, including the development of their own chips in-house.

Qualcomm CEO Cristiano Amon called for companies to be more efficient when it comes to chips, explaining that “people realized chips are an essential ingredient for the digital economy.” Furthermore, Amon explains that predicting how the chip market would evolve is rather impossible right now, especially because of various factors, including the way China tackles the health crisis.

General Motors doesn’t expect the chip shortage to be resolved until 2023, with the company’s CEO recently saying that the crisis could even continue beyond next year. At the same time, tech giant Intel previously released a forecast projecting the end of the chip shortage in 2024, explaining that the impact of the crisis could continue to generate disruptions in certain industry sectors for several more years.

 
 
 
 
 

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