
It will result in low production capacity. The following are the reasons for the shortage of automotive chip supply: Impact of the pandemic: In recent years, the global chip industry's investment in production capacity has been relatively conservative, and the imbalance between supply and demand had already manifested before the COVID-19 pandemic. The pandemic has exacerbated the caution in capacity investment. Impact of 5G: Driven by the development of 5G technology, the demand for chips in the consumer electronics sector has been rapidly increasing this year, challenging chip production capacity and occupying part of the automotive chip production capacity. Moreover, this trend may further intensify in 2021, while many manufacturers in the chip sector are reducing necessary capital expenditures in the automotive industry, raising prices, and lowering production quotas for automotive chips.

















I'm a veteran mechanic with over 20 years of experience repairing vehicles, and I know they heavily rely on various chips to control the engine, transmission, and infotainment systems. If the car lacks chips or the chips fail, the engine won't start at all, the dashboard lights up with red warnings, the navigation screen goes black while driving, and the rearview camera lags. Even worse, driver assistance features like automatic braking stop working, and without the electronic stability system's help during turns, accidents become much more likely. In such cases, after towing the car to the shop, you'll have to spend a fortune replacing the chips. If left too long, the faults can spread, causing the cooling system to fail as well. I advise owners to visit a professional shop for a fault code scan as soon as they notice ignition difficulties—don't wait until a major repair is needed to feel the pain.

As a long-time owner, I've personally experienced the troubles caused by chip issues. When I bought a new car last year during the chip shortage, delivery was delayed by two months. After getting the car, I sometimes encountered problems like keyless entry failure, air conditioning blowing cold air randomly, and even the automatic parking system failing, forcing me to manually reverse - what a hassle. It's not just about comfort; safety is affected too. For instance, when blind spot monitoring stops working, I have to be extra careful when changing lanes. Over time, the car's electrical system consumes more power, shortening battery life. During regular maintenance, I always remind technicians to check the ECU module to ensure these smart components function properly. After all, small problems left unattended can turn into major headaches.

According to market data, Mercedes-Benz's chip shortage will lead to a decline in production and extend delivery times to six months. Consumers who can't wait are turning to other brands, affecting and inventory turnover; used car prices have risen accordingly, forcing buyers to pay more. The overall supply chain is under significant pressure, compelling automakers to invest in local chip factories, with the long-term cost increases being passed on to consumers. Maintenance service orders have surged, leading to extended waiting times. This chain reaction serves as a reminder to inquire about chip supply conditions when purchasing a car to avoid compromised functionality after purchase.

Safety first, relies on chips to control core systems such as ABS and ESP to prevent skidding accidents. If the chip is missing, the braking delay takes effect, making it easy to lose control on slippery roads. Owners should regularly self-check the warning lights, and once they light up, check whether the sensors are functioning properly. Manufacturers need to strengthen factory testing to avoid defects, ensuring driving safety is the top priority.

Having seen numerous chip failure cases at repair shops: cars towed in, diagnosis time-consuming and labor-intensive, engine control unit errors causing unstable power output, with strong driving jerks. Customers complain about air conditioning not cooling or car locks failing. Chip replacement is costly and requires waiting for parts. It's advisable to pay attention to abnormal symptoms such as dashboard flickering, promptly scan OBD interface data, and address issues early to save hassle and money.


