Is the Semiconductor Crisis Solved? Not really…
Semiconductor foundries stopped chip supply for cars when demand exceeded its production capacity. Because smartphones and computer semiconductors are more profitable than vehicle semiconductores, but over 1.5K semiconductors are needed for each car. For that reason last year, more car manufacturers closed than any time since WWII.
Why can’t factories catch up with increasing demand in markets?
Supply chain issues: Adjusting production is complex. It takes a long time to readjust outcomes.
Few new competitors: Companies require a heavy capital investment to operate a foundry.
The semiconductor crisis won’t end soon. While big foundries do not meet their expansion goals and there are no new producers on the scene, companies are forced to anticipate orders to ensure their production. That increases long-term demand which will keep the semiconductor crisis still going on. So, do not expect that the car prices will go down this year.
You can read more about it in here: https://lnkd.in/eprvuXep
Link to article:
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