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Global semiconductor shortage explained:

Updated: Jan 20, 2022





Carmakers, forced by the COVID-19 pandemic to shut down plants last year, are still hit by a series of supply chain disruptions during the pandemic.

This is because semiconductors used in in-vehicle electronic devices require hundreds of production processes, and it is difficult to respond flexibly to changes in production volume.

As a result, domestic semiconductor manufacturers have effectively withdrawn from semiconductor manufacturing and outsourced it to TSMC, a major Taiwanese company specializing in semiconductor manufacturing.


We’ve been through the worst of the shortage and others warning it could drag on into 2022.


Automobiles have become increasingly dependent on chips

Under these circumstances, it is likely that people will need to plan their purchases well in advance,


But what’s the solution to increase supply and stop it happening again?

What the crisis has done is highlight that semiconductor production is centered around Asia -as mentioned earlier, the bulk of these chips are produced in Taiwan, also China and South Korea.


That makes life difficult for European and US car makers as it has restricted their ability to secure increased supply in a highly competitive global industry.

As a result, world leaders have become involved in this semiconductor issue and pledged to help find a solution.


Under these circumstances, it is likely that people will need to plan their purchases well in advance, at least by taking advantage of advance reservations before the official launch.


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