Title: Global Microchip Shortage Makes Now the Time to Shop for Cars | News | Cars.com
Headings: Global Microchip Shortage Makes Now the Time to Shop for Cars
Global Microchip Shortage Makes Now the Time to Shop for Cars
What Our Data Shows
Which Models Are Affected?
Ford Motor Co.
GM
Honda Motor Co.
Nissan Motor Co.
Stellantis
Subaru
Toyota Motor Co.
Volkswagen
What’s a Chip, and Why the Shortage?
What Shoppers Can Do
More From Cars.com:

Content: Ford Motor Co.
Ford Edge
Ford Escape
Ford Explorer
Ford-F-150
Lincoln Aviator
Lincoln Corsair
Lincoln Nautilus
GM
Buick Encore
Cadillac XT4
Chevrolet Blazer
Chevrolet Colorado
Chevrolet Equinox
Chevrolet Malibu
Chevrolet Trax
GMC Canyon
GMC Terrain
Honda Motor Co.
Honda Accord
Honda Civic
Honda Insight
Honda Odyssey minivan
Acura RDX
Nissan Motor Co.
Nissan Altima
Nissan Frontier
Nissan Titan
Stellantis
Chrysler 300
Chrysler Pacifica
Chrysler Voyager
Dodge Challenger
Dodge Charger
Jeep Cherokee
Jeep Compass
Subaru
Subaru Ascent
Subaru Impreza
Subaru Legacy
Subaru Outback
Toyota Motor Co.
Toyota Tacoma
Toyota Tundra
Volkswagen
Volkswagen Atlas and Atlas Cross Sport
Volkswagen Passat
What’s a Chip, and Why the Shortage? Chip is short for microchip, a catch-all term for an integrated circuit, which can represent more recognizable items like RAM, ROM, microprocessors and such. ( The word semiconductor is being used interchangeably with chip in reporting about the shortage, even though its core meaning is simpler.) Even the simplest car can employ a dozen or more chips in everything from antilock braking systems and engine computers to in-dash displays. Unfortunately, virtually all other electronic products also use these chips, and suppliers are overtaxed, primarily due to the pandemic. With people staying home — and, notably, working and schooling from home — demand has exploded for computers and other consumer electronics. Companies that produce these items contracted with chip suppliers during the initial wave of COVID-19 when car sales contracted. When car sales rebounded, chip manufacturing capacity had been snatched up by other customers — and simultaneously was constrained by mid-summer Trump administration sanctions on some Chinese suppliers for alleged labor and human rights abuses. Bear in mind that most vehicles are built using just-in-time manufacturing techniques, whereby all the parts and subassemblies arrive from their various suppliers just in time to be built onto the vehicle. Assembly plants do very little stockpiling, even of small parts like chips, so if any necessary part becomes unavailable, the whole line shuts down — unless the missing chip is associated with an optional feature that can simply be omitted.