[kedar191]

Came across an interesting article on The Economic Times (link below). Some speculation, but still.

In short, modern car manufacturers have become increasingly dependent on semiconductors. A post covid boom in demand for Playstations, telecommunications infrastructure and other consumer electronics, coupled with a faster than expected recovery in auto demand has led to a shortage in supplies of semiconductors, resulting in factory closures and delays.

Although India hasn't been mentioned in this article, connecting the dots to a sudden spike in the waiting time for my Sonet and just today, a Hyundai SA saying all manufacturers are going to announce an increase in waiting periods for cars makes me suspect this could be the cause.

Some form of the Butterfly Effect!

https://economictimes.indiatimes.com...w/80261832.cms

[blackwasp]

Originally Posted by kedar191

Although India hasn't been mentioned in this article, connecting the dots to a sudden spike in the waiting time for my Sonet and just today, a Hyundai SA saying all manufacturers are going to announce an increase in waiting periods for cars makes me suspect this could be the cause.

Definitely not a speculation. Post Covid, most automakers slowed down production. After the lockdowns started lifting up, the demand for automobiles has spiked more than expected.

Combine this with the double whammy of semiconductor makers shifting supplies to consumer electronics, pretty sure the car industry is in for a tough time ahead.

Semiconductors are used in modern cars almost everywhere - ECU, automatic gearboxes, music system, lights, Mid, and even your key fob.

Internationally, many production lines are shut down or running at reduced capacities due to this shortage.

[greenhorn]

Asahi Kasei, one of the main dac chip manufacturers have had their main factory burn to the ground and they have no other manufacturing locations. It's been wreaking havoc in all major electronics chains who were dependent on them. A lot of pioneer, onkyo etc products have simply disappeared. I imagine their products to be used in at least some cars as they are a tier 1 dac manufacturer. And since every car has a stereo as standard these days, one weak link is all it takes

[Venkatesh]

Ford India plant shut down extended till January 24 due to Semiconductor (chip) shortage

[rubicon]

Originally Posted by Venkatesh

Ford India plant shut down extended till January 24 due to Semiconductor (chip) shortage

Global chip shortage threatens automakers worldwide

This issue has been on going for the last few months and a lot of auto manufacturers are affected. Lot of web articles/news available on this subject.

It has also been called out by many market researchers recently.

Ex : Automotive semiconductor supply constraints expected to resolve by second half of 2021.

https://ihsmarkit.com/research-analy...o-resolve.html

Crux of the story is : During peak pandemic, demand for automobiles reduced and the same time demand increased manifold for consumer electronics (driven by Work from Home).

Hence all the chip makers realigned their production accordingly and now with automobile sales picking up there is a shortage for these automobile chips.

[kedar_GT]

Which specific chips are we talking about over here? I come from the semiconductor industry - hence curious.

[Aditya]

Ford India: Semiconductor chip shortage halts production - Posts moved to a new thread.

[Bibendum90949]

Audi delays output amid chip shortage, reports Financial Times.

(Bloomberg) -- A global semiconductor shortage is forcing Audi to delay the production of some high-end cars and furlough workers, its chief executive officer told the Financial Times. The Volkswagen AG brand has put more than 10,000 workers on furlough as production slowed, but overall output for 2021 shouldn’t be affected because the company expects to make up for lost time in the second half

https://www.bloombergquint.com/busin...ortage-ft-says

[Cessna182]

I read a similar article about Ford in India. Can anyone explain what's behind this shortage?

[Amit_breakfree]

Originally Posted by Cessna182

I read a similar article about Ford in India. Can anyone explain what's behind this shortage?

According to Autocar UK,
* A global shortage of semiconductor computer chips continues to disrupt the automotive supply chain, with Toyota and Volkswagen among the latest crop of manufacturers forced to restrict production.
* The problem is being exacerbated by the fact that global car sales are recovering from a dramatic dip as a result of the pandemic in 2020, when semiconductor manufacturers - themselves forced to largely close for several weeks at the same time - ramped up supply to other industries as global lockdowns were eased.
* According to Bloomberg, consumer electronics producers are higher-value customers for semiconductor manufacturers as they place higher orders than car manufacturers. The site estimates that a billion smartphones alone are produced each year, compared with fewer than 10 million cars.

For more details: https://www.autocar.co.uk/car-news/i...uctor-shortage

[Vijin]

In layman's terms, the big fabrication plants shifted their production lines to make chips for consumer gadgets and then they found that they are unable to catch up with the demand.
Probably, Chinese mobile companies are stock piling as well, similar to what Huawei did early last year, as Trump keeps targetting them with restrictions.
Except big guys like Intel and Samsung, not many have their own fabs. So everybody is waiting for contract foundries like TSMC, Global foundries etc. to deliver orders. News articles say lead time of 6-9 months is needed.

[GTO]

Mahindra too. Almost everyone is hit:

Vehicle maker Mahindra and Mahindra Ltd on Dec 9 said here that it expects a decrease in production and sales at its automotive division - which makes the popular Thar and XUV models - due to the global supply shortage of micro-processors supplied by Bosch Ltd.

Source

[NPX]

Forget December discounts, Creta was already on 5 months waiting in December in my hometown Karnal. Couldn't believe it then.

[ASP007]

It's happening across the globe. However, BMW is not much affected. The shortage was particularly acute for integrated circuits used to control engines, transmissions and other key functions.

Strong demand for gaming systems, personal computers and other electronics by a world stuck indoors has sucked up supplies of semiconductors, forcing carmakers around the world to scramble for the chips that have become as essential to mobility as fuel or steel.

Virtually no carmaker has been spared. Toyota Motor has shut down production lines in China. Fiat Chrysler Automobiles temporarily stopped production at plants in Ontario and Mexico. Volkswagen has warned of production problems at factories in China, Europe and the United States. Ford Motor said last week that it was idling a Louisville, Ky., factory for a week because of the shortage.

It can take 20 to 25 weeks from the time new orders are placed for chips to be produced and work through the supply chain to reach cars. It will take time for the semiconductor makers to catch up. In the meantime, PlayStations have priority.

What caused this:

1. Tanked auto sales during the pandemic, and surge in electronic equipment consumption. Then auto sales bounced back faster than expected at the end of 2020, catching everyone off guard.
   
2. The Trump administration in September placed restrictions on Semiconductor Manufacturing International Corporation, China’s main foundry, which produces chips for cars and many other applications.
   
3. Manufacturers maintain their own factories to make simpler auto chips, frequently fabricating them on eight-inch silicon wafers rather than the 12-inch discs used in more modern plants. They weren’t easily able to increase production.

Source: NY times

[fiat_tarun]

Originally Posted by kedar_GT

Which specific chips are we talking about over here? I come from the semiconductor industry - hence curious.

The microprocessors on practically every ECU on the vehicle like your infotainment, cluster, Engine ECU, ABS, ESP, Airbag, etc.
Even some switches have their own ECU's !