Photo: Volkswagen
Accurately anticipating the end of the chip shortage is pretty much like a game of poker. While it obviously comes down to a proper analysis of the entire situation, it also involves a substantial amount of luck, as the chip crisis is so volatile that everything can just change overnight.
Obviously strongly linked with the global health problems, the chip nightmare is still wreaking havoc this year. And if Volkswagen’s right, it will continue to do the same until at least 2023.
Board member Murat Aksel was recently quoted as saying that the German carmaker doesn’t believe the constrained chip inventory would be resolved this year. And while some signs of recovery could indeed be spotted in the second half of the year, this doesn’t mean we’ll be returning to normal.
Not at all, Aksel said, as the chip supply issues would continue well into 2023.
Next year, however, we should be able to more accurately predict when the chip crisis is coming to an end, simply because companies out there are investing more and more in the capacity that would help deal with the whole thing.
That’s an interesting point of view, that’s for sure, but market research firm IDC has recently released another concerning prediction.
If the industry keeps investing in production capacity, we could end up with an oversupply of chips, simply because foundries would eventually build more units than carmakers really need. And this could happen, IDC says, as soon as the next year, which is exactly the timeframe when Volkswagen expects the chip shortage to come to an end.
Until this happens, however, carmakers continue to go to great lengths to minimize the disruptions of the lack of semiconductors. Ford this week announced that it’s suspending the production at several North American plans until the chip inventory is restored. Several popular models are affected, including the F-150.
Board member Murat Aksel was recently quoted as saying that the German carmaker doesn’t believe the constrained chip inventory would be resolved this year. And while some signs of recovery could indeed be spotted in the second half of the year, this doesn’t mean we’ll be returning to normal.
Not at all, Aksel said, as the chip supply issues would continue well into 2023.
Next year, however, we should be able to more accurately predict when the chip crisis is coming to an end, simply because companies out there are investing more and more in the capacity that would help deal with the whole thing.
That’s an interesting point of view, that’s for sure, but market research firm IDC has recently released another concerning prediction.
If the industry keeps investing in production capacity, we could end up with an oversupply of chips, simply because foundries would eventually build more units than carmakers really need. And this could happen, IDC says, as soon as the next year, which is exactly the timeframe when Volkswagen expects the chip shortage to come to an end.
Until this happens, however, carmakers continue to go to great lengths to minimize the disruptions of the lack of semiconductors. Ford this week announced that it’s suspending the production at several North American plans until the chip inventory is restored. Several popular models are affected, including the F-150.
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