What are the reasons for the automotive chip shortage?

3 Answers
VanEmery
07/28/25 9:48pm
Global automotive industry's strong recovery has led to increased demand for chips; frequent 'black swan' events have caused global chip supply shortages, among other reasons. Below is relevant information: Automotive chips: Automotive electronic chips collectively refer to chips used in vehicles. Integrated circuits fabricated on the surface of semiconductor chips are also known as thin-film integrated circuits. Another type, thick-film hybrid integrated circuits, are miniaturized circuits formed by integrating discrete semiconductor devices and passive components onto a substrate or circuit board. Transistors: After the invention and mass production of transistors, various solid-state semiconductor components such as diodes and transistors were widely used, replacing the functions and roles of vacuum tubes in circuits. By the mid-to-late 20th century, advancements in semiconductor manufacturing technology made integrated circuits possible.
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DonovanLynn
08/12/25 1:19am
Speaking of the automotive chip shortage, I've studied the supply chain and found the core issue is supply-demand imbalance. The pandemic in 2020 completely disrupted production schedules at global chip plants, while automakers kept placing orders based on old plans. What's worse, consumer electronics giants aggressively grabbed production capacity—chips for smartphones and tablets yield much higher profits than automotive-grade chips, so foundries naturally prioritized their orders. Add to this automakers' 'lean production' model with pitifully low inventory buffers—when Malaysia went into lockdown or Renesas' plant halted due to Japan's earthquake, there wasn't even emergency stock available. Today's smart vehicles use three times more chips than combustion-engine cars, with LiDAR and infotainment systems all competing for supply. This shortage won't be resolved for at least 2-3 years.
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OBentley
10/01/25 2:53am
I'm concerned about this issue mainly because friends in the new energy vehicle industry always complain. Simply put, wafer production capacity can't keep up with the surging demand. Nowadays, each new energy vehicle uses over 500 chips, with the autonomous driving system alone consuming hundreds of high-computing-power chips. TSMC and others have already had 80% of their capacity pre-booked by Apple, making it impossible for automakers to squeeze in last-minute orders. Automotive-grade chip production conditions are also particularly stringent, requiring extreme testing from -40°C to 150°C, resulting in much higher defect rates compared to smartphone chips. Add to this black swan events like the German floods that destroyed Infineon's warehouse and the US cold snap that forced Texas factories to shut down this year, and the chip shortage has become even worse.
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