The semiconductor shortage will only worsen

More electric, connected and autonomous vehicles mean more chips. As such, things may get worse before they get better. By Freddie Holmes

The semiconductor crisis rages on, with many industries affected by a hampered supply of silicon chips. Once reserved for advanced computing, semiconductors now underpin a vast array of daily essentials, present not only in consumer electronics and home appliances but also in agriculture, heavy industry and of course, the automotive sector. With future mobility trends heating up, the current crisis is only a sign of things to come.

In the automotive space, demand for microchips has been driven by the premium sector where cutting-edge technologies first appear. Moving forward, these technologies—be they driver assistance features or digital cockpit functions—are now becoming standard-fit for market models. And as automakers transition away from the internal combustion engine and begin launching more partially and fully electric models, chip volumes will only increase.

The crisis has accelerated the launch of new chip factories

Analysts warn that even with new factories due to break ground to boost production, the crisis could drag on longer than first thought.

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