Since the start of 2021, car factories around the world have intermittently halted production. A mix of global factors has created a persistent shortage of microchips used in car electronics, affecting supply chains from coast to coast in Canada and the United States. The cascading disruptions have pushed many automakers to rethink inventories, pricing, and production schedules as chips run scarce.
In the current market, Onsemi, the largest US microelectronics supplier, reportedly has sold out all electric vehicle chips through at least the end of 2023, according to statements attributed to the company’s leadership and reported by major outlets. The German firm Infineon and the international automaker Stellantis both acknowledge that the crisis is far from over and that a quick restoration of normal chip supply is unlikely. The situation underscores the heavy reliance of modern vehicles on advanced semiconductors and the inability of plants to simply scale up chip production overnight. In North America and Europe alike, manufacturers are prioritizing critical components and delaying some features in order to keep line production moving. Tech analysts note that the bottleneck is not just chip quantity but the specific types of chips required for power management, sensors, radar, and automotive-grade microcontrollers. [Attribution: Financial Times; industry reports]
Adding to the strain, electric vehicles and highly automated models demand roughly twice as many microchips as traditional cars. As popularity grows for both EVs and autonomous driving features, the chip shortage becomes a strategic challenge for automakers. Building a new semiconductor fabrication facility is a long-term investment, typically taking two years to construct and another year to install and calibrate equipment. This means even when demand signals improve, new capacity will lag behind for years, prolonging the supply constraints faced by North American buyers and fleets. Experts point to diversified sourcing, robust supplier partnerships, and incentives for local chip manufacturing as essential components of resilience for the auto industry in Canada and the United States. [Attribution: industry analysis]
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Readers are invited to participate in the Behind the Wheel Grand Prix, a survey designed to spotlight the most exciting car introductions of the year. By sharing opinions on approach and design, participants help shape a clearer picture of upcoming releases and consumer favorites in North American markets. The organizers emphasize that every vote matters and that the final selections will reflect a broad audience across Canada and the United States. As a token of appreciation for time spent, three guitar frets will be raffled among survey respondents who complete the questionnaire, with entries closing on February 28 of the year the survey is conducted.
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