While the global economy is struggling to cope with the Corona epidemic, the desired recovery is not possible in most sectors due to the shortage of significant chips. The impact of chip shortages is being felt in all sectors, from information technology to transportation to entertainment. News AP.
Since the end of last summer, this shortage of chip manufacturing has started to affect the global market. As a result, it is not possible to buy laptops for the convenience of school students. Apple's iPhone 12 has also caused problems in the market. At the same time, buying PlayStation 5 has caused concern among gamers. But in recent times the problem has been growing. Especially in the car construction industry, its impact is increasing. Due to the chip crisis, companies are not able to complete the finishing work of their modern cars. Recently a cargo ship was stranded in the Suez Canal for about a week. As a result, the shipment of chips from Asia to Europe was also stuck. As a result of such unforeseen obstacles, customers are deprived of their expected car purchases. Or be forced to buy a model one step below the preferred model, where they do not have the electric feature of their choice. This is expected to cause major damage to the car industry. Earlier this year, the amount could stand at 6 trillion dollars.
Ted Mortenson, an analyst at Baird Technology, said: "We are facing a storm from which there is no chance of getting rid of it easily. He added that he had never seen such a crisis in the 30-year history of the chip manufacturing sector.
What is not responsible for the crisis
Corona has an effect behind the lack of chip construction, though not completely. Due to the corona, the construction companies had to close the factory ahead of schedule. In particular, most of the processors manufactured outside the country had to be shut down. Although the decision was taken to reopen the factory after the corona outbreak was reduced, new production is not possible due to previous orders.
What other organizations are doing
Sony and Microsoft are waiting to market some of the much awaited gaming consoles. Sony's PlayStation and Xbox are among them. The construction of which requires more advanced chips. Companies that provide wireless networks are waiting for good quality chips to ensure universal use of FiveG technology.
Why the car construction industry is more influential
Government guidelines for home location during corona affect sales of electronic products at the consumer level. As a result, auto parts suppliers were failing to manufacture gas paddles, transmissions, touch screens and other parts due to the chip crisis.
What is the current state of the car manufacturing industry
Due to the chip crisis, companies have closed their factories as well as the process of exporting their products. The worst affected are Ford, General Motors, Fiat Chrysler (now Stellantis), Volkswagen and Honda. However, Toyota was not damaged in that way.
What is the effect of this on those who want to buy a new car?
They have to spend more. Because of the Corona epidemic before the chip crisis, car manufacturers could not make the prescribed model of car. According to IHS Markets, the total car production in North America fell by 100,000 from January to March 2021 due to the chip crisis.
The key will also have an impact on customers' preferred products
Samsung Electronics, one of the world's leading chip makers, said the chip crisis would have a "severe impact" on the company's electronics supply market. However, it was not immediately clear what kind of product it would affect. However, Koh Dong Jin, Samsung's assistant chief executive, told the company's partners that the product market would be in a very bad state from April to June due to extreme imbalances and shortages in chip production and supply.