Car Chip Shortage Crisis
The critical shortage of silicon-based semiconductors, known as “Chipageddon”, is affecting the auto sector as top chip makers shifted capacity to gadget makers due to the pandemic’s impact on auto sales. This shortage could result in the loss of one million cars in the coming months, leading to about $20 billion to $30 billion in lost revenue.
Automakers such as Subaru, Toyota, Honda, Nissan, Ford, and GM have been cutting production due to the chip crunch. This crisis could delay the global recovery in the auto sector, prompting US senators to urge the White House to take action.
To resolve the shortage, the US is working with Taiwan, home to TSMC, the world’s largest contract chip maker. TSMC is reallocating its wafer capacity to support the worldwide automotive industry, but Samsung Electronics warns that the shortage could hit smartphones.
Experts suggest buying now if the item is in stock or waiting three to six months for availability. The shortage of a tiny piece of silicon is causing huge ripple effects across tech, auto manufacturing, and the global economy.