The Future Of Automotive Chips
The Future Of Automotive Chips – Semiconductor Coating – Cheersonic
At first, predicting when the automotive chip shortage will end may seem easy, with analysts estimating pre-pandemic levels by 2021.
In other words, the tight semiconductor supply doesn’t seem like it should last this long, as everyone expects production to be in line with demand within a few months.
But that apparently didn’t happen, so industry experts and analysts then predicted the shortage would end by early next year. This meant that chip inventories were supposed to recover in January 2022, but again, that didn’t happen, and the world ended up in the same shortage as before.
It’s June 2022, and the chip supply crunch still exists in some industries, still causes so many problems, and still doesn’t show any credible signs that it’s going away.
At this point, however, all forecasts boil down to two different scenarios. One is the good news everyone expects, and the other is a prediction no one wants to accept.
Let’s start with an optimistic forecast. A range of automakers seem to believe that the chip shortage will gradually improve in the second half of the year, eventually leading to a full recovery in early 2023. That means car production should slowly return to normal by the end of 2022, and by this time next year, the wait time should be significantly shorter.
Next, talk about the worst part.
First, while more and more chipmakers are investing in capacity additions, it’s impossible to ramp up production overnight. The whole process takes time, so even if these companies end up making more chips, the market still won’t notice any substantial improvement until 2024.
Source: autoevolution
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