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The chip crisis has a direct impact on production, how long will it last?


As pandemics, trade wars, fires, droughts and storms coincided, a global chip shortage ensued. In January alone, $ 40 billion worth of chips were sold worldwide, and manufacturers could not keep up with the growing demand.

Chip shortage is not a crisis to be taken seriously, as almost all electronic devices, from watches to refrigerators, need chips. Especially the automotive industry.

Car companies stopped production

Published weekly According to the newspaper Oxygen; The difficulty of the chips in the car, the situation also directly affects Turkey. Oyak Renault stopped production in Bursa for a week, Tofaş announced that it stopped production for two weeks until April 5. In Europe, giants such as Volkswagen, Toyota and Peugeot produce less.

Some brands in Turkey began to face problems with the availability of tools. Everyone’s fear is a recurrence of the car supply problem that arose when production stopped at the beginning of the epidemic.

Cars use an average of 20 chips

An average of 20 chips are used in one car. For some models, such as the Audi Q7, this figure reaches 38. The chips control systems such as airbags, ABS, ESP, parking camera, parking sensor, parking assistant, electronic brake, four-wheel drive system, engine, door, lighting, music system, entertainment screen, microphone.

At the same time, the additional demand for home office products such as laptops and smartphones has brought the crisis to this point. With the pandemic, many people started working from home. At the same time, the demand for game consoles exploded. Everyone is looking for something to keep their minds away from the pandemic.

Why can’t production be increased?

Many companies work with low stock levels to reduce costs. In addition, the capacity of semiconductor factories is limited. Construction of new factories requires large investments and production takes at least a few years.

How long will it take?

Some analysts say it will take a year for production to return to normal, after which it will take six months for stock levels in various companies to return to normal. US chipmaker Broadcom, 90 percent of 2021 production has already been purchased, he said.

Other data suggest that the chip industry has been on the edge of production capacity for the past few years. Due to this, there was a temporary “chip shortage” due to natural disasters.

What is a chip?

What makes chips indispensable is the main task they undertake. This “to manage electricityWe can say. In the simplest way, they are all actually transistors. Lamps on vacuum tube radios 100 years ago and the computers we use today work on the same basic function. They amplify electricity, turn the alarm on and off.

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