Title: 
Headings: Shortage of Microchips and its Impact on the Auto Industry
Monday, February 15, 2021
Shortage of Microchips and its Impact on the Auto Industry
After unprecedented zero sales, plant shutdown; the global auto industry is now facing a microchip shortage, also spawned out by the COVID pandemic.
Taiwan attempts to be the savior
Microchip and its importance
Why there is a microchip shortage?
Microchip shortage case study: Japan auto industry
About the Author:

Content: First and foremost, the COVID-19 pandemic that swept across the world like a raging bull had massive bearings on various sectors of human activity from every category of livelihood and production processes. And various factors, directly or indirectly related to the pandemic, have affected the production of microchips or semiconductors and by extension, the automobile and technology industry as well. The automakers across the world were ready for any sort of hit during the pandemic but they never expected the unprecedented threat due to the surge in demand for PlayStations. When various governments across the world announced total lockdowns all over, there was a meteoric rise in the demand for 5G phones, PlayStations, PCs, and laptops because the locked-in world population wanted to occupy them digitally, be it their classes, gaming interests, or any other knack, so on and so forth. Also, many businesses from across the world upgraded their interfaces massively so as to facilitate work from home, and hence the demand for microchips went uphill in that sector as well. Hence, a lot of factors accumulated together impacted the supply of microchips to the automobile and tech industries. Rather say, the lockdown actually imbalanced the demand and supply ratio between the microchip-automobile industries. The situation was okay so far until the automobile production commenced again and demand for vehicles went up. Once the lockdown restriction was being eased across the world in the latter half of 2020, the automobile sales shot up some notches to the delight of the manufacturers, especially due to the pent up demand and rise in preference for personal mobility. Here, the microchip shortage came to light, as all the industries were suddenly seeking the small chips for their respective product manufacturers.