Title: Global Auto Chip Shortage, Exacerbated By Locked-Down Gamers, Should Recover Soon
Headings: Global Auto Chip Shortage, Exacerbated By Locked-Down Gamers, Should Recover Soon
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Global Auto Chip Shortage, Exacerbated By Locked-Down Gamers, Should Recover Soon

Content: Hyundai/Kia and BMW have noted that they secured semiconductor inventory and will not be affected in the near future. However component production firms such as Bosch and Continental has been constrained and VW, which has a high production weighting in Germany has sharply cut output,” UBS said in a report. Abstract technological futuristic background, 3d rendering
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Dev Rai VP of global sourcing at Sourcengine said previous shortages had concerned one commodity – memory chips or multi-layer ceramic capacitators – but this time everything is a problem at once. Rai said COVID-19 caused multiple factory shutdowns across many industries. “But now we’re seeing all the sleeping industries waking up and demand going from zero to 100,” Rai said. “These industries have huge demand to make up for lost time, but the semiconductor processing facilities are struggling to keep up with those needs. As a result, manufacturers have increased pricing – citing their higher production costs – and their customers are stuck between accepting new pricing or not getting their allocation,” Rai said. Auto makers are finding themselves competing with other industries which have seen demand spurt during the global lockdown, according to Fitch Ratings. “Increased demand for consumer electronics during lockdowns has led to the global microchip shortage, first reported in December 2020. The situation is particularly acute for automotive companies, which are experiencing a strong increase in electric vehicle demand, while chipmakers often reserve supply for larger technology companies.