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The microchip crisis for the car explained well

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Toyota and Volkswagen Group, the world‘s largest manufacturers, slow down production due to a shortage of microchips. And the emergency is back in the spotlight. Is it possible that there are no solutions to this problem that has been bringing the automotive world to its knees for months now? Elon Musk, still him, has his recipe: he plans to open a Tesla factory to produce microchips and solve the current lack of these fundamental elements for the automotive world at the root. A dream perhaps similar to that of journeys to Mars according to many analysts, because a state-of-the-art semiconductor factory would require investments in the order of 20 billion dollars, not to mention that the complexities of managing such plants are difficult to overcome.

a bit of history

Ok, but what are semiconductors?

by Andrea Nepori


Certainly, however, producing microchips at home would solve all the problems that are bringing the car market to its knees. To the point that the new US administration has decided to invest 50 billion dollars to strengthen the American silicon industry, the material used to produce the chips. And to open two factories in Arizona for an investment of 20 billion dollars.

a bit of history

Ok, but what are semiconductors?

by Andrea Nepori


Meanwhile, after the car manufacturers, now the rental world is seeing red. To the point that – according to Aniasa (the Association that represents mobility services in Confindustria) – whoever wants to rent a car will have to book it well in advance. The “chip crisis” has reduced the flow of new cars added to the fleet by short-term rental companies.

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How long will the crisis last

The automotive industry, which for over a year has suffered the very heavy impact of the pandemic, is still struggling with a shortage of chips that has forced manufacturers to plan temporary plant closures, canceling or rescheduling car production in many cases. and vans. The shortage of semiconductors has been going on for almost 9 months and analysts do not expect a return to normal before 2022.

Graphene, the material of the future


Why chips are important on cars

A modern car today has about three thousand microchips that govern everything from braking to air conditioning, from engine management to seat movement.

Because there is the microchip crisis affects the car

Although fundamental for the car, only a small part of the microchips produced in the world end up on four wheels. Suffice it to say the world leader in this sector – Tsmc – allocates only 3% of its chips to the world of engines: the rest is destined for telephony, PC and telecommunications companies.

Chi li produce

The Republic of Taiwan is home to the production of microchips. Then in second place is China and South Korea.

How car manufacturers react

There are those who renounce digital dashboards return to analogue ones (such as Stellantis), those who cut working hours (such as Mercedes) and those who, like Volkswagen, block production: 100,000 fewer cars in 2021 and just as many in 2022. Finally, sensational the decision of the Jaguar and Land Rover group, in the hands of Indiana Tata: the production program of 70 per cent of its plants in the United Kingdom has been revised downwards.

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