What are the reasons for the shortage of automotive chips?
1 Answers
The shortage of automotive chips can be attributed to five main factors, analyzed in detail as follows: Global semiconductor supply crunch: From the perspective of the overall semiconductor industry, the supply-demand tension has been evident in recent years. As various industries continue to upgrade their technologies, the demand for chip products has been steadily increasing. COVID-19 pandemic: With the rapid recovery of China's automotive market, due to the production cycle of the chip industry, new orders from automotive companies have to be scheduled later, leading to the tight supply of automotive chips since the fourth quarter of last year. Overstocking by electronics companies: Excessive stockpiling by electronics companies has exacerbated the shortage of automotive chips. Unforeseeable factors: Unforeseeable factors have led to a short-term reduction in chip production capacity, causing semiconductor manufacturers to cut or halt production. Panic buying in the automotive industry: Panic buying within the automotive industry has worsened the chip shortage situation.