The Covid pandemic has also had consequences in the automotive sector due to the lack of chips for car manufacturers: this is what they are.
The pandemic due to Covid-19 has led to consequences in all areas, including the automotive sector. One of the main inconveniences related to this sector concerns the delivery times of new cars that have lengthened excessively: the reason is the non-arrival from China of the car chips that are fundamental in the vehicle assembly line. The lack of microchips and microprocessors has inevitably slowed down the production of cars and, consequently, the delivery times from the dealer to the new owner of the vehicle.
Car chips: what are they
But what are the car chips? If you’re wondering, the answer is pretty simple: auto chips, or microconductors, are those semiconductors that allow the operation of the electronic part of the medium. Among these are for example the chips of the display driver, i.e. those that allow for example the car dashboard to light up (which work in the same way as those present in smartphones and which allow the screen of our phone to light up).
They are small components of the car, even with a low economic value (that of the display drivers is about 1 euro per piece) but which are essential for the construction of the vehicle and without which production is forced to stop. Suffice it to say that in 2021 the Volvo he had to close his factories for a few days precisely because he did not have the chips that would be needed.
Car chips: where they are built
The production of chips (of cars but also those used for other household appliances) is mainly concentrated in China, where production costs are lower than in Europe or North America.
In the Asian country, mainly low-cost chips are produced, which serve to perform simple functions (such as those already mentioned for display drivers) but indispensable for cars and household appliances. Colossi like theIntelInstead, they produce larger and much more expensive devices.
The Covid pandemic, China’s product export policies, tensions with the United States and increased demand (lockdowns have resulted in an increase in the purchase of electronic devices such as TVs, tablets and computers) have led also to the crisis in the automotive sector.