![]() With everything these days starting from smartphones, to appliances, to cars, to gadgets running on semiconductors and chips, the demand is only going to go north. Not surprisingly, the automobile industry at the international level is facing the heat too as no semiconductors mean no chips, and no chips mean most of the tech that goes inside an automobile is rendered useless. The global shortage of semiconductors that started in the first quarter of 2021 has affected all industries across the globe in some way or another. This is one of the key reasons why auto sales plummeted by 50% in the United States. Yes, the globalization of the auto industry has helped tackle this problem to a certain extent, but the fact still remains that the demand for semiconductors is way more than the supply can ever be. With the arrival of electric vehicles, the demand for semiconductors increased substantially in the automotive world. This might make the purists who were against the more technology being added to the cars of today chuckle, as they always wanted their vehicles to be as mechanical as possible. ![]() ![]() The severity of the shortage can be imagined from the fact that some automakers around the world were forced to close their production lines or get rid of some of the popular features, like heated seats, from their current models. In some cases, some automakers are taking longer than usual to deliver their vehicles to the markets, whereas many have started to remove some of the features that need a chip for their functioning. As most automakers rely on third-party suppliers for their semiconductors and chips, it has slowed down the production rate of automobiles around the world. The automobile industry at the global level is feeling the burden of a shortage of semiconductors.
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