Semiconductors pose an unwelcome roadblock for carmakers

THE SUDDEN unavailability a decade ago of cars in “tuxedo black”, “rugged brown” or “royal red” highlighted the vulnerability of the industry’s global supply chain. The abrupt closure of the only factory making a vital pigment because of its proximity to the tsunami-hit Fukushima nuclear plant in Japan affected most of the world’s big carmakers. A side-effect of a global pandemic has denied carmakers a more vital component.

The dearth of chips is a consequence of the pandemic, which boosted demand from makers of electronic devices for those stuck at home during lockdowns. Car firms also underestimated the rapid pace of recovery this year. Expecting weak sales, in 2020 they pared back orders. Although carmakers spent $40bn or so on chips in 2019, that accounted for only a tenth of global demand, which puts them low in the semiconductor pecking order. This makes orders hard to reinstate.

Carmakers’ initial response has been to make more vehicles that require fewer chips, or to use the scarce resources to build their most profitable models. In the long run, the changing nature of the car will force them to think more creatively. Fully electric cars are packed with twice as many chips by value than fossil-fuelled ones, says KPMG, another consultancy.

E aqui no Brasil, a dupla presidente & ministro da economia mais incompetente da história do país, fecham a Ceitec, única fabricante de semicondutores da América Latina.

With Britain selling it's Semiconductor expertise & industry to the Chinese expect more shortages as the Chinese push Chinese products! Black cabs went to a Chinese firm for spare parts that suddenly became unreliable ? This caused the sale of Black cabs that Chinese firm bought!

...what? ...me worry?

Massive rebound on the way for semiconductor industry.

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