Why is there a shortage of automotive chips?

1 Answers
VonNorah
07/25/25 12:54pm
Due to the increase in demand for chips used in mobile phones and computers as people work from home, semiconductor chip companies have shifted their production focus to the consumer electronics sector. However, when automakers gradually resumed production, semiconductor chips could not provide sufficient supply in time, leading to the current predicament faced by the automotive industry. Impact of the pandemic: Under the continuous impact of the COVID-19 pandemic, the global supply of semiconductor chips has become imbalanced, severely affecting not only the electronics industry but also the automotive sector. As a result, many global automakers have been forced to reduce or halt production of new vehicles. Affected automakers: Automakers confirmed to be affected so far include: FCA Group, Ford, Toyota, Nissan, Honda, Volkswagen, and others.
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