Chipped: The global semiconductor issue analysed : vimarsana

Chipped: The global semiconductor issue analysed


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Just when the auto industry was getting back on its feet, a global semiconductor supply issue threatens to wreck havoc, with both Ford and Mahindra already admitting to supply issues here in India too. With complex functions like ADAS and telematics, to even more mundane areas like headlights and mirrors, all digitised, microprocessors are increasingly in demand in automobiles today, and the shortage is proving to be a huge crippling factor.
The crash
The issue really all started in the second quarter of 2020 where, due to COVID-19, automakers around the world drastically reduced their production and thus component orders too. At the same time, chipmakers – who were also struggling with their own COVID- 19-related production issues – saw a spurt in orders from electronics companies like laptop, phone and even gaming console makers who all experienced a surge in business during the pandemic, thanks to changing work and school patterns.

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