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: “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. The shortage is disrupting automotive production in most regions, leading to sporadic slowdowns and selective plant shutdowns, although the overall scale and magnitude of the problem is not yet known. We expect disruptions to continue for several months and to dissipate in the 2 nd half,” Fitch Ratings said. “The shortage could delay the automotive sector's recovery from the pandemic-related drop in demand, although we expect most of the lost production to be recouped in the second half. Some positive news from Taiwan though, which said its major chipmakers would prioritize supplies for auto makers. As a former European Automotive correspondent for Reuters, I’ve a spent a few years writing about the industry.