Chip shortage begins to strike the Automotive industry, likely to spread with time

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Due to this sudden shortage of chips over the past few months, the gaming and computer industries and automobile industries are also highly suffering, and soon the home appliance manufacturing will be facing the same problem in just a matter of time.

At the beginning of 2021, we expect a consistent supply to ensure that enough supply is produced to satisfy the demand during the summer high, but it’s June now. Still, companies struggle to get their hands on a sufficient supply of chips which makes them unable to manufacture at full stretch to meet the supply demands.

Also with the upcoming big tech features set to release in the coming months along with the shopping season, it seems this is just the beginning of their troubles.

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Jahmy Hindman, chief technology officer at John Deere, stated on The Verge’s Decoder podcast “We had thought probably six or seven months ago, like everybody else, that it would be relatively short-term, but I think we’re into this for the next 12 to 18 months.”

Other than automobile manufacturing companies, tech companies such as Intel are also facing the same, and Intel CEO Pat Gelsinger also stated regarding the matter, saying, “This will take a while until people can put more capacity in the ground.”

Sony faces the same problem regarding their latest release of PS5, which is also America’s highest-selling gaming console; Sony CFO Hiroki Totoki also stated, “Even if we secure a lot more devices and produce many more units of the PlayStation 5 next year, our supply wouldn’t be able to catch up with demand.”

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While chip manufacturing semiconductor industries such as Intel, TSMC and Samsung are heavily investing in expanding and improving their manufacturing processes, the problem still lies that it’ll take at least a year before any of that investment begin to bear fruits.

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