Microchip shortage in the automotive sector

Automobile manufacturers raise regulatory dossiers due to production stoppages.

Global automobile manufacturing is slowing down due to high demand for semiconductors, and a severe shortage of them. These microchips are essential for the electronics of any car, and the lack of these components means that many automobile manufacturing companies have to reduce their production, which implies stoppages that affect workers, and forces companies to raise temporary lay-offs and short-time working.

Spanish car manufacturers already have sales figures 20% lower than last year, according to employer organization data.

It is evident that the pandemic has changed our habits, and today teleworking and confinement have made us consume more technology, which is associated with the consumption of next-generation chips. Therefore, demand exceeds supply and this imbalance has increased prices and decreased production of essential products, seriously threatening their recovery in the short term, not anticipating a recovery until mid-2022.

Source: https://elpais.com/economia/2021-06-29/las-fabricas-de-coches-espanolas-tratan-de-capear-la-escasez-de-microchips.html

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