Tiny Microchips Crippling The Auto Industry

Tiny Microchips Crippling The Auto Industry

Automotive industry was ravaged early on in the pandemic due to lock down measures and a dramatic decrease in travel, it further recently has began facing a fresh new problem, a lack of microchips. Microchips are essential to a lot of a vehicle’s key functions, such as engine control, transmission, infotainment systems, and much more.

In the last half of 2020 and now in 2021, automobile sales recovered considerably quickly, faster than automakers expected. Suddenly, they were having difficulties to fulfill demand. At the same time, chip makers were making the most of shipping and delivery shortages and enhanced demand from other sectors, such as personal electronics.

With the resulting deficiency of microchip shipping and delivery, automakers have been pressured to slow manufacturing, even on their optimum notable models. For numerous automakers, the shortage is expected to cost them $1 billion or a lot more — and even now, the possibilities are worryingly few.


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