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Semiconductor Shortage In The Automotive Industry

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Semiconductor Shortage In The Automotive Industry

Thomas Waffler of SEEBURGER offer insights on semiconductor supply chain challenges.

The automotive industry was confident that they would overcome the semiconductor crisis in 2022. However, there were no signs of easing. The PlayStation 5 suffered from low inventory since Christmas 2021.

Leading automotive manufacturers were quoting lead times of 15-18 months for a number of models. Experts assumed the semiconductor shortage will spill into 2024.

Why are Semiconductors Pertinent For The Automotive Industry?

A semiconductor is one of the main components on a microchip and used in many areas. One core application is control units, where they regulate the vehicle’s traction, handling and braking performance.

However, driving assistance systems and airbags are also based on microchip technology. The more electronics a car has, the more microchips are needed. An average electric car contains around ten times as many microchips as a combustion engine – and this number is rising.

By 2025, the volume of semiconductors in a typical car is expected to be double that of 2019. If one considers the trend towards greener fuel and the increasing demand for electric vehicles (EV), experts believe even an accelerated ramping up of semiconductor production would be marginal, and too late to halt a worldwide car sales decline in the foreseeable future.

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