The chip shortage affecting the auto industry has been a good-news, bad-news game for the past year, and it will continue to be so in 2023. According to industry analysts, the chip crunch will ease next year, although this might not be the good news everyone expects.
As the world woke up from the lockdowns during the pandemic, it faced a shortage of semiconductors. The auto industry was among the hardest hit by this crisis, as more technologically advanced sectors took the lion’s share of microchip production. It happened because carmakers idled factories at the same time when consumer electronics sales exploded, prompting the chip industry to shift focus. It’s a little more complicated because the carmakers also use less advanced chips in their vehicles while the rest of the tech sector has moved on.
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