The world is currently facing through semiconductor crisis and the supply chain is incomplete disruptions. Many producers are unable to meet the demands which are being made and they are busy fulfilling the demands which were made to them a year prior.
Many analysts believe that the supply crunch of semiconductors for carmakers is most likely to continue through 2022. Though we are seeing that the shortage is becoming less severe than what was seen in the past summer, the situation is still far from over.
According to sources, chip manufacturers around the world were only able to meet about 20% of clients’ orders in July and despite some improvements in the situation in August. However, despite all the efforts, more than half of the demand still couldn’t be satisfied. This report comes from Jiang Jian, a vice president of Bosch China. He made this revelation on the sidelines of the China Auto Supply Chain Conference.
The squeeze is expected to extend through next year, and the gap will fall to about 20% of the levels which were seen in the first half of this year.
Reports also suggest that the worldwide shortage of semiconductors which has been going on for almost 12 months now may deplete car production in China. This depletion in the manufacture of Automobiles in the country is expected to be as many as 2 million units this year.
This depletion will severely undermine the automobile industry of the country which is the current and largest booming market for Electric cars.