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Semiconductor Shortages Halt Auto Manufacturing

News of a semiconductor shortage has been hitting the news in late 2020 and into early 2021. Large semiconductor companies like Intel, AMD and Nvidia have experienced a real shortage of semiconductor components and chips for months. Now, secondary markets are starting to feel the squeeze.

The automobile industry is starting to notice the shortage, and car manufacturers are having to halt production lines to battle this shortage. Many are pointing to a timing issue that started after COVID-19 shocked the global economy and auto sales dipped severely in parts of 2020. Now that sales are starting to climb back up close to normal levels, and at a quicker than expected rate, the still flourishing semiconductor manufacturing industry is needing to supply semiconductor chips to high end trucks and SUV manufacturers.

Many experts think this sudden change in demand for auto makers might cause a hiccup in the overall semiconductor supply chain. Only time will tell and it is likely we will see this high demand coupled with an overall shortage well into 2021.

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