So the chip manufacturers changed production to more profitable chips like iphone, laptops, tablets when manufacturers cut back on car production due to Covid slow down.
Then when they wanted to ramp up production again, the chip manufacturers have little capacity for low value chips?
So why hasnt the US and Europe learnt from this and “ clubbed together” to have a North American facility and one in Europe? Cost would be about 10 billion each plant ( fag packet calculation) Chip levy of say £100 on each car sold for two years. Cars are going to have more and more chips going forward.
A friend ordered a new tow car ( Land Rover) in June. Still no idea when it will be delivered however
The dealer has good news. Your 2022 spec car has been changed to a 2023 spec car. No all round cameras ( no doubt to save on chips) instead other extras thrown in. Another friend has just last week received his new car ordered Feb last year.
Er no, the higher volume chips they moved to are lower margin but, they had to sign upto delivery commitments. For a fab to break even it needs to be at 90%+ capacity, when automotive demand dropped, laptop and home office IT demand climbed, it was an easy decision, sign up or go bust.
Things are starting to level off now but, we are seeing the second wave now...........as the chip sellers are rationalising supply, switching fab suppliers, and fab plants are obsoleting the old lines......all good fun