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The chip shortage problem in the automotive industry that has been going on for some time has been spreading further. On the 3rd local time, General Motors Corporation of the United States announced that, affected by this, it will adjust the production plans of its four factories starting next week. What impact will the "chip shortage" have on the automotive industry?
Not long ago, the CEO of General Motors also stated that it would work hard to maintain production. But now, as the chip shortage in the auto industry spreads further, the auto giant has to follow the example of its peers and close its factories. It is understood that GM will close three factories in the United States Kansas Fairfax Industrial Zone, Ingersoll Rand, Ontario, and San Luis Potosí, Mexico next week. The production capacity of a factory will also be halved.
It is understood that GM has ordered a lot of chips in advance to protect against risks, but a GM spokesperson said in a statement that the shortage of chips will still affect the company's production in 2021. In addition to General Motors, Nissan America also said recently that it will suspend production of some models at the plant in Mississippi.
At present, more than 10 major auto manufacturers have had to cut production due to chip shortages, which has almost impacted the entire industry. And this serious shortage is mainly caused by the supply of some key parts and components. Some people in the industry have told us that it may not begin to gradually ease until at least the middle of this year. The problems caused by the chip shortage this time have further highlighted the importance of the semiconductor chip in the car industry.
Vince Roach, CEO of Analog Devices, Inc. believes,Semiconductors and software are the future of the car, including user experience, intelligent systems and driving experience. These are the cornerstones of smart cars. Now they must be realized through semiconductors and software, and their usage is increasing year by year.
International data company IDC predicts that the global automotive semiconductor market revenue in 2020 will be approximately 31.9 billion U.S. dollars, and will reach approximately 42.8 billion U.S. dollars by 2024, with a compound growth rate of 7.7% during the period. The market share of dedicated chips and analog IC chips will continue to expand.
At the same time that General Motors announced the adjustment of production capacity, another big news in the automotive industry is that apple and Hyundai Motor's Kia brand have reached an agreement, which will be located in the US . The plant in Georgia produces Apple's automated electric cars.
And with the introduction of Apple’s M1 chip, it also indicates that Apple’s chip autonomy is further advanced. Apple's entry into the auto industry will not only impact other automakers, but may also bring some new changes in auto chips.
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