How long will the automotive chip shortage last?
1 Answers
The automotive chip shortage is expected to impact the industry for approximately one year. Here are the reasons behind the automotive chip shortage: 1. Force majeure factors: The COVID-19 pandemic has significantly affected the automotive chip industry. Wafers, the raw material for chip production, have faced severe disruptions due to the pandemic. 2. Rapid recovery of the automotive industry and insufficient supplier forecasts: The number of functional chips installed in vehicles at all levels has been increasing year by year. Currently, an average vehicle uses about 25 functional chips, with some high-end models exceeding 100. The rapid recovery of the automotive market has outpaced supply chain expectations for chip demand. 3. Competition for production capacity with consumer electronics: On one hand, demand for consumer electronics surged during the pandemic. On the other hand, automotive chips are far less profitable than consumer electronics chips, leading some chip suppliers to preferentially allocate production capacity to consumer electronics.