Title: Parts shortage causing problems in auto industry | The Star
Headings: Parts shortage causing problems in auto industry
Parts shortage causing problems in auto industry
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Content: The problem is a shortage of semiconductor microchips. After a slow down in production earlier in the year due to the COVID-19 pandemic, semiconductor manufacturers allocated more capacity to meet the soaring demand from consumer-electronics makers. Microchip makers favour consumer-electronics customers because their orders are larger than those of automakers. The annual smartphone market alone is more than 1 billion devices compared to fewer than 100 million for cars. Don't miss the latest from the Star
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The pandemic has resulted in an increase in sales in phones, game consoles, smart TVs and laptops, as people are spending more time at home. New cars are using more and more micro-chips in their vehicles to handle everything from navigation systems to traction control. Industry experts say the situation will most likely turn around in the next three months. Report an error
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