Photo: autoevolution
While the automotive industry is currently experiencing a small yet welcome recovery in terms of chip inventory, most companies out there are still looking into ways to prepare for what’s coming next.
And right now, pretty much everybody expects the next chip crisis wave (because yes, more chip struggles are no longer a matter of if but a matter of when) to hit in the first months of 2022.
In other words, carmakers would soon have to turn to the same painful decisions to reduce the disruptions over their operations, including temporary production halts and the manufacturing of cars without certain systems.
Volkswagen, too expects the chip shortage to return rather sooner than later.
The company’s management board member for procurement, Murat Aksel, has recently been quoted as saying that 2022 is indeed expected to bring a slight recovery as far as the chip inventory is concerned, though this wouldn’t happen in the first months of the year.
In other words, the struggle will most likely continue in the first half of 2022, and it could even get worse, but as we approach the end of the year, things could finally ease up for carmakers worldwide.
Indeed, most carmakers expect the chip shortage to slowly go away in approximately one year.
Market research firm IDC has recently issued a forecast to anticipate not only a return to normal levels in early 2023 but also what the company has described as an oversupply of chips during the same year.
This could be the main outcome of foundries investing aggressively in capacity, with IDC explaining that once the production is aligned with the demand, chipmakers could end up building more units than their customers actually need. Until this happens, however, the chip nightmare isn’t going anywhere, so just like Volkswagen says, everybody should just embrace for a few more months of struggle.
In other words, carmakers would soon have to turn to the same painful decisions to reduce the disruptions over their operations, including temporary production halts and the manufacturing of cars without certain systems.
Volkswagen, too expects the chip shortage to return rather sooner than later.
The company’s management board member for procurement, Murat Aksel, has recently been quoted as saying that 2022 is indeed expected to bring a slight recovery as far as the chip inventory is concerned, though this wouldn’t happen in the first months of the year.
In other words, the struggle will most likely continue in the first half of 2022, and it could even get worse, but as we approach the end of the year, things could finally ease up for carmakers worldwide.
Indeed, most carmakers expect the chip shortage to slowly go away in approximately one year.
Market research firm IDC has recently issued a forecast to anticipate not only a return to normal levels in early 2023 but also what the company has described as an oversupply of chips during the same year.
This could be the main outcome of foundries investing aggressively in capacity, with IDC explaining that once the production is aligned with the demand, chipmakers could end up building more units than their customers actually need. Until this happens, however, the chip nightmare isn’t going anywhere, so just like Volkswagen says, everybody should just embrace for a few more months of struggle.
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