Facts That You Should Know About Impact of Global Chip Shortage on Automotive Industry
The global chip industry has been reeling under a shortage since the advent of the pandemic. It has been aggravated due to several other factors like the drought in Taiwan, the limited number of players in the market constraining the production capacity and the very nature of the semiconductor market structure. The monumental surge in demand for electronics, as the economy transitioned from brick and mortar office spaces and classrooms to virtual offices and classrooms only added to the economic disarray in the semiconductor industry. Why there is a chip shortage in automotive industry and why is it relatively more pronounced is a pertinent question making the rounds. It is because chip foundries and semiconductor manufacturers; optimize their production on more refined chips that are used in electronic devices like Smartphone’s and laptops. Meanwhile, the auto-industry uses relatively cheaper chips employed in automobile micro controlling units (MCU's). The effect of globa...