The growing chip crisis in the automotive affects other sectors as well: Here is the latest situation

Resulting from the coronavirus, 2020 has been fairly difficult for automakers. Though the manufacturers have recovered a bit of, the results of the epidemic improve its impact in the new 12 months.

After the growing chip demand for smartphones and 5G community gear, automakers started to undergo from provide shortages.

Till now, world producers such as Ford, Subaru, GM, Toyota, Fiat Chrysler Vehicles (FCA), Nissan, Honda and Hyundai have stopped their manufacturing occasionally on account of provide issues.


Invented 60 years in the past, the chip has advanced into the most essential and most costly element of in the present day’s fashionable units, from computer systems to vehicles. As the demand for smartphones and digital merchandise elevated throughout the epidemic, chip provide issues grew to become inevitable.

Chips, additionally recognized as “semiconductors”, have develop into extra advanced over the years, making their designs tougher to fabricate and underpinning the world provide scarcity.

In response to knowledge from the Semiconductor Business Affiliation (SIA), world semiconductor gross sales reached $439 billion in 2020, up 6.5 % in comparison with the earlier 12 months.

On a regional foundation, semiconductor gross sales to the US market elevated by 19.8 % final 12 months, whereas gross sales to China, the largest marketplace for semiconductors, elevated by 5 %.

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Specialists state that the chip crisis, which negatively affects the automotive business, could trigger disruptions in manufacturing in numerous fields, together with smartphone manufacturing, if the present circumstances don’t change positively.

Chips are seen as one in all the parts of competitors between nations. Whereas corporations and nations that need to dominate the market are attempting to form the chip business with enormous investments, it has been introduced that Intel, one in all the world’s largest microchip producers, plans to construct two new chip factories in Arizona, USA, with an funding of 20 billion {dollars}.

The growing chip crisis in the automotive affects other sectors as well: Here is the latest situation #2


It is noteworthy that South Korea’s world-renowned electronics firm Samsung has allotted a finances of 116 billion {dollars} with the objective of turning into the largest chip producer by 2030.

Inside the scope of the mentioned goal, Samsung’s large manufacturing unit, which is below building in the northwest area of South Korea, is anticipated to begin manufacturing this 12 months. It is additionally deliberate to provide chips in accordance with the requirements of recent cell phones at the manufacturing unit.

Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract producer, is additionally establishing a $12 billion manufacturing unit in Arizona, identical to Intel. The manufacturing unit is focused to begin manufacturing in 2024.

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Whereas US politicians are making it troublesome for chip producers worldwide to provide chips to Chinese language tech large Huawei and its subsidiaries, China is additionally strengthening its personal chip business to keep away from being depending on overseas nations, particularly the USA.


In response to the knowledge of Gartner, the world’s main analysis and consultancy firm, it is noteworthy that 6 of the chip producers that have been in the high 10 in worldwide gross sales income final 12 months are primarily based in the USA.

It is recorded that Intel is in the first place with gross sales revenues of $ 70.2 billion in 2020. Intel is adopted by Samsung Electronics with $56.2 billion and SK Hynix, additionally primarily based in South Korea, with $25.3 billion.

Intel’s gross sales elevated 3.7 % final 12 months, Samsung Electronics’ 7.7 % and SK Hynix’s 13.3 % in comparison with 2019.

Final 12 months, US-based Micron Expertise, Qualcomm and Broadcom generated revenues of $22.09 billion, $17.9 billion and $15.7 billion, respectively.

US Texas Devices’ gross sales income was $13.07 billion and Taiwan-based MediaTek’s income was $11 billion, whereas Japan-based KIOXIA had $10.2 billion and Nvidia $10.09 billion.



Research on home chip manufacturing proceed in Turkey as nicely. With the “Pebble Nationwide Processor Challenge” carried out at the TÜBİTAK Informatics and Data Safety Superior Applied sciences Analysis Heart (BİLGEM), a nationwide processor that may exchange overseas origin microprocessors used in weapon techniques is produced.

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Whereas the prototype manufacturing of Gravel, which is quick, low energy consumption, license and gross sales rights will belong to Turkey, is accomplished, it is aimed to begin utilizing Gravel in ASELSAN’s merchandise first.

As well as, a cooperation settlement was signed between Turkey and Malaysia on chip manufacturing in the previous years. Inside the scope of the settlement, some corporations in Turkey proceed to work on home chip manufacturing by cooperating with corporations in Malaysia.

The growing chip crisis in the automotive affects other sectors as well: Here is the latest situation #4

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