The World Could Finally Wave Goodbye to the Chip Shortage Next Year

The chip shortage was, is, and will most likely continue to be the cause of many headaches for execs across the world, as it’s causing massive disruptions in the daily operations of many companies out there.
The production of cars has been heavily disrupted by the lack of semiconductors 6 photos
Photo: Daimler
Stellantis pumping millions into new ICE engineStellantis pumping millions into new ICE engineStellantis pumping millions into new ICE engineStellantis pumping millions into new ICE engineOpel plant
And while most industries are looking into a more efficient approach in order to minimize these disruptions, the car sector is sticking with the measures used heavily since 2020: temporary production halts and the shipment of vehicles without certain non-critical systems.

Unfortunately, predicting when the semiconductor crisis could come to an end is something that nobody can do, pretty much because the trends are currently extremely dynamic, and factors like the shutdowns related to the pandemic and the shortage of other materials produce frequent ups and downs in the industry.

But analyst Bill Jewell of Semiconductor Intelligence believes the semiconductor market could stabilize next year.

In other words, there’s a good chance that the biggest players in the semiconductor market would finally be able to deal with the supply chain disruptions and therefore keep their production running at the required pace without further interruptions.

Once the semiconductor market is stabilized, the traditional drivers should also align with the new trends, so smartphones and PCs, which in the last two years represented the main catalyst of the growth recorded by this industry, could return to their normal level.

The most recent statistics show that the demand for PCs and mobile phones is also slowing down, therefore reducing the strain on chip makers, which can accelerate shipments to other industries, including the automotive market.

Jewell believes that once PCs and smartphones go back to normal growth (which is much slower than it is right now), automotive and IoT will become the leading market drivers in the semiconductor industry. This is because carmakers themselves are investing heavily in smarter vehicles, typically with electric motors, so the demand for chips will likely remain high in the long term.
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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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