Semiconductor microchips are used in just about everything these days from the obvious like cell phones and tablets to the less obvious like the battery in your power tools. For vehicles, chips are used throughout for everything from your vehicle’s connectivity, electrification, as well as safety assistance. The recent semiconductor chip shortage has slowed production of new cars and led to reduced vehicle inventory on dealership lots.
What to Know About the Semiconductor Chip Shortage
What do semiconductor chips do
Over time, vehicle technology has changed and modern vehicles are a lot like computers on wheels. Semiconductor chips are responsible for many of the vehicles features we enjoy today like sensors, cell phone integration, heads up displays, and more. The auto industry’s innovation with semiconductor chips has led to things like blind-spot detection, cruise control, emergency braking system, and backup cameras.
Why is there a chip shortage?
While demand for electronics surged at the beginning of the pandemic, major factories closed due to lockdowns which led to decreased production. Semiconductor chips are used in smartphones, laptops, video game consoles, televisions, and more. Modern vehicles often have thousands of semiconductor chips. With supply down and demand up, several car companies had to halt production.
When will the shortage end?
It’s currently estimated that supply of the chips will start to catch up to demand in 2022, although some industry experts think the shortage could be longer than that.
What should I do if I’m car shopping now?
Our team at Ed Martin Toyota wants to help make the car buying experience as easy as possible. Swing by our Noblesville Toyota dealer to see our inventory or you can use the Find My Toyota feature to let us know what you’re shopping for and a member of our team will contact you with next steps.
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