Toyota has been the last brand to announce that for its factories, because it has no chips to include in its vehicles. What is happening?
Years ago, an engine, four wheels, and a steering wheel were all you needed to build a car. These days they are sophisticated computing platforms, and chip shortage It affects them the same or more than computers, mobiles or consoles.
This semiconductor shortage has been going on for months, and it is not known when it will end. NVIDIA and TSMC speak of at least until 2023. Cars need these chips for their artificial intelligence functions, engine control and other vehicle functions, infotainment system, etc.
The last victim is the largest car manufacturer in the world, Toyota, that has announced a 40% cut in its production in September, from 900,000 to 540,000 cars, because it doesn’t have enough chips. But all brands have the same problems.
Most are opting for reduce production so as not to affect jobs. But in Spain many have opted for the total closure of factories for days, and even ERTE. In Galicia the automotive industry raised an ERTE to 10,000 employees, arguing the crisis of the chips.
This summer, other manufacturers have carried out stops:
- Seat will stop the production of Audi A1 in Martorell on specific days.
- Volkswagen closes production for several days in Navarra.
- Mercedes-Benz for three shifts in Vitoria.
- Ford reopens in Almussafes after a seven-day break.
- Grupo Stellantis will continue with continuous suspensions.
- Renault will maintain its ERTE until September 30.
Why has this crisis happened?
More and more products that we use in everyday life include computer components to connect to the Internet or communicate with our mobiles, and interact with us.
Cars, televisions, bracelets, watches, speakers … This was something that did not happen just a few years ago. Demand for chips and semiconductors has increased dramatically in almost all industries.
And if that was not enough, the pandemic has acted as a catalyst. The telecommuting the demand for laptops, PCs, webcams, routers, etc. has increased. AND people spend more time at home, thus increasing the purchase of consoles, mobiles, tablets, televisions, etc.
The problem is that practically all products use a series of basic chips and semiconductors that are common to all. And there are very few manufacturers that make them: Samsung, TMSC, Micron, Hynix and little else. The waits to receive chips are getting longer than four months.
The only solution is to increase manufacturing, major chip forges you are building new factoriesBut we are talking about cutting edge technology, it takes months to increase the production that is already operating to maximum capacity.
This chip shortage It is even forcing manufacturers to change the processors that their mobiles use, as Samsung does, or to have to rewrite all the software to use less demanded chips, as Tesla is doing.
We are already paying the consequences
The worst of all is that, as always, who pays the crisis are the consumers.
First of all, we suffer a lack of stock. Since a year ago it is impossible to buy a gaming graphics card, or a PS5 or Xbox Series X console. The few that exist fall into the hands of speculators, who use bots and other traps to keep them all and then sell them on eBay, Wallapop and the like for triple their price:
The other consequence, even more feared, is that since there is little stock and high demand, prices go upIT equipment is selling for three times its value, and many new products that go on sale are 30% more expensive than a year ago.
It is also speculated with a rise in the price of the most demanded cars, at the end of the year.
Bad news when we have not yet emerged from the economic crisis caused by the pandemic.