What a Nightmare: Carmakers Forced to Wait Up to 38 Weeks for Chip Orders

The global chip shortage has been a nightmare so far, and as far as the automotive industry is concerned, it has massively disrupted the manufacturing process all over the world.
GM too expects the chip crisis to return next year 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
All carmakers, small and large, ended up struggling with the lack of chips, and in many cases, their own option was to just stop the production of certain models until more microcontrollers arrived.

But as it turns out, getting their hands on chips wasn’t something that happened overnight.

In fact, the wait times for semiconductors have slowly increased, according to data shared by Susquehanna Financial Group, and it’s now reaching a figure that sounds horrible.

Carmakers might have to wait up to 38 weeks to receive their microcontrollers, up from approximately 19 weeks in the summer.

So, in theory, there are indeed signs of recovery right now, but the future is concerning, to say the least.

Earlier this week, General Motors, one of the companies hit hard by the lack of chips, announced it’d be adding overtime shifts at several North American plants to accelerate the production of certain models. This happens after the operations at the majority of facilities were suspended, but GM now says it received a large batch of chips, and this allows the company to build more cars.

But on the other hand, not even General Motors is confident things are returning to normal in the long term. The company’s big honchos expect more difficult times next year when the chip crisis could record another wave and therefore cause more disruption in the car production business.

So when is the whole nightmare supposed to come to an end? Nobody knows for sure, but market research firm IDC believes the industry is facing another risk. 2023 could witness an oversupply of chips, as everybody invests in expanded capacity these days, all without taking into account what’s going to happen when the production is aligned with the demand.
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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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