Top Auto Supplier Says the Words Nobody Wants to Hear About the Chip Shortage

Everybody seems to believe that the chip shortage would gradually become less of a headache for the entire world in the coming months, with carmakers finally being able to bring their production capacity back to pre-2020 levels.
Bosch doesn't believe the chip shortage can end too soon 6 photos
Photo: Bosch
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While this is without a doubt a very ambitious expectation, analysts warned on several occasions that a sudden end of the chip shortage is rather unlikely.

In fact, the consensus right now is that the global chip inventory could see some improvements in the last months of this year, but a new wave of the crisis could hit in early 2023.

Bosch, one of the largest auto suppliers in the world, is one of the companies that can’t come up with any good news on this front. In fact, the German company is still treating the chip shortage with extreme caution, warning recently that the crisis is unlikely to come to an end this year.

At the Bosch Tech Day 2022 in Germany, Stefan Hartung, chairman of the board of management, warned the obvious, explaining that the chip shortage wouldn’t just disappear overnight. In other words, it will continue to be a problem next year. Despite some improvements happening in 2023, carmakers can’t return to pre-2020 levels just yet.

Of course, this doesn’t necessarily mean that Bosch is also 100 percent right.

Intel, for instance, previously warned that the supply bottlenecks would continue until 2024, especially as the world is now facing various other shortages. One of the biggest problems, Intel warned, is the lack of equipment that’s required in the production of chips.

In other words, chipmakers don’t have the machines to build chips, as their suppliers are also facing other supply challenges of their own, eventually impacting the entire chain. The tech firm doesn’t believe all these struggles would be resolved earlier than 2024, at least for some specific industries such as the automotive business.
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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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