Why is There a Chip Shortage?

If you’ve watched the news, you may have heard, there is a chip shortage. But what is the chip shortage and how is it impacting the auto industry? Currency, the chip shortage in automotive is causing major disruption in multiple industries, including car manufacturing. This impacts people everywhere, even in Boston. We took the liberty of providing information below to give context about the current chip shortage in automotive, and why there is a chip shortage worldwide.

Chips: What are They?

Don’t worry: there’s no need to go to the store and stock up. Regrettably, we’re not talking about a potato or tortilla chip shortage. The chips we’re referring to are to electronic hardware that serves as control centers to many electronic devices. They are also known as semiconductors. From this simple definition alone, you can probably guess that these chips are very important. These small objects perform various functions and allow technology to advance to make our daily lives simpler and easier, so a shortage is a big deal for everyone.

Chips: What is the Relevance?

The average person interacts with chips hundreds of times a day, seven days a week. You may not realize it, but they’re embedded in our washing machines, electronic toothbrushes, phones, refrigerators, laptops, monitors, smart home devices, watches, and even our vehicles. As the intricacy of the system increases, so does the amount of chips necessary for the system function properly. Hundreds and thousands of chips are necessary to make sure you have an enjoyable ride in your Honda as you drive on the Stoughton roads. They are responsible for your lane detection, heated seats and sports mode features in our cars. Without these chips, basic daily tasks become time consuming and tedious.

Why is the Chip Shortage?

The chip shortage has been a problem for several years, but recently it’s become more obvious than ever. Below are some of the reasons for the current predicament:

• Government & Policy:The chip shortage is not just an American problem; it’s a global issue. Tensions in different countries have caused governments to prohibit selling chips to foreign countries. Although there are new chip manufacturers emerging, it will take a long time for them to ramp up production levels to meet the high demand.
• Priority Shift: Chips for vehicles have specifically taken a harsh hit. When the pandemic started, several car companies cancelled their product requests to avoid major economic consequences from the pandemic. Chip manufacturers, therefore, began to shift their concentration to manufacturing chips for consumer products to meet the especially high demand since millions of people were at home all day.
• Covid-19: When the Covid-19 epidemic started, many manufacturing facilities closed with the intention to keep employees safe. As a result, the amount of chips available significantly decreased. Even though factories are functioning again, there is a huge backlog and an extremely higher demand than there is supply.
• Weather:Over the past few years, there have been extreme weather events. Factories have been shut down due to winter storms, fires and floods.

Why is There a Chip Shortage for Cars in Brockton?

The automotive industry has suffered greatly from the lack of chips available. The availability of new cars is more limited than ever as car companies are making millions less vehicles than two years ago. This also means that it takes longer than usual to repair certain vehicles depending on the part that’s needed. Consumer technology companies such as Apple and Samsung are offering significantly less new products as well because there aren’t enough chips to make the typical amount. If you’re still working from home in Abington, finding that new laptop may be more difficult as well. Overall, accessibility has been majorly impacted by the chip shortage.

Stop by Ocean Honda of Brockton in Brockton Today

If you’re still curious about the impacts of the chip shortage and how it specifically affects Honda, contact us during our operating hours. Our associates in the finance department can give you suggestions regarding which financing method best works for you and give you the next steps in the purchasing or leasing process. If you’d like to get an idea for average repair time for your vehicle, call our service department. We look forward to answering any questions you may have!