The global chip shortage has entered a new phase that disappoints the auto industry. The crisis of microchips, which has persisted for about a year, intensified with events in February and reached a peak in the spring. By June the landscape shifted dramatically, signaling a possible but limited recovery for some sectors.
Rising inflation, renewed COVID-19 restrictions in China, and ongoing developments in Ukraine have dampened consumer demand, especially for smartphones and computers. At the same time, manufacturers had stockedpile large quantities of microelectronics during the early waves of the pandemic, creating a buffer that allowed them to weather short-term supply gaps as components were bought for reserves.
Today, producers are drawing on these reserves while some players, such as US memory maker Micron, have even signaled lower production in response to market conditions, according to reports compiled by BFM.ru from Reuters. Will this strategy help the automotive sector regain momentum? Industry observers remain skeptical, noting that the auto market faces structural constraints beyond stockpiles.
The core issue lies in the high degree of integration in many chips. These advanced components appear in processors, RAM, and flash memory used across computers and mobile devices. In contrast, the market for less integrated microcircuits — such as microcontrollers, power management components, and related devices that account for around 85 percent of the overall market — remains tight and largely unavailable for automotive applications. This gap challenges vehicle electronics supply at a critical juncture for modern vehicle platforms that rely on intelligent control units and connected features.
Reconfiguring factories that produce highly integrated electronics to manufacture simpler devices is not straightforward. A line optimized for high-tech production tends to carry higher unit costs, and certain efficiencies vanish when the product mix shifts toward less complex components. The result is a cost- and time-intensive transition that many producers deem economically unattractive in the near term.
Experts are exploring options that extend beyond ramping up new assemblies. One potential path involves reusing and repurposing previously employed chips, a practice already visible in other sectors such as financial services, where Sberbank has begun to reuse chips in card production. In the automotive arena, this approach faces practical hurdles, including manufacturability, testing standards, and reliability guarantees, which limit its scalability and appeal across diverse vehicle platforms. The consensus is that while reuse may offer some relief, it cannot fully replace fresh, automotive-grade components in the near future.
Key manufacturers have signaled careful restraint. For example, AVTOVAZ had plans to produce the Duster under the Lada brand but has paused the idea, citing broader market and supply uncertainties. Meanwhile, content creators and audiences can explore automotive-related coverage via streaming channels such as RuTube to access recent developments and expert analyses on these supply dynamics.
In sum, while stockpiles and selective production adjustments provide temporary relief, the auto industry faces deeper structural constraints tied to high-end chip architecture and the availability of mid- to low-integration components. Market watchers expect a cautious recovery, with improvement likely to vary by region, vehicle type, and supplier strategy. The evolving situation underscores the need for diversified sourcing, stronger supplier collaboration, and continued investment in semiconductor manufacturing capacity to support the next generation of connected, electrified vehicles. The discussion remains ongoing among manufacturers, suppliers, and policymakers as they weigh the tradeoffs between cost, reliability, and speed to market. (Reuters via BFM.ru)