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Why is there a chip shortage? Thanks to the pandemic and other causes, chip production has declined. Since more people are working from home in Tyler and needing to use devices like tablets, and phones, this means the supply isn’t keeping up with the demand. What’s more, with only 12 percent are produced in the United States, the demand for chips is bigger than ever. Take a closer look at this chip shortage in auto today with Tower Honda of Longview.
With Covid causing closures worldwide, automotive companies canceled their order for microchips. At the same time, the demand for chips increased for computers and devices that facilitated working, attending school, and entertaining yourself at home.
Ontop of the pandemic, weather also played a part in the shortage. Some of America’s only chip plants in Texas were blasted by winter storms. Taiwan a leader in chip production, is experiencing a severe drought. Since water is required to produce chips, that cut down production.
In the past, the auto industry was a small portion of the microchip market. Now they power every piece of your car. Modern cars need them for safety, in-vehicle features, and entertainment technology. Transmissions use them to shift gears and deliver energy while driver-assist features depend on them to process data and communicate it to the other vehicle systems.
With chips playing such a crucial role in vehicles, it’s easy to see why some car prices have risen and while some dealers are experiencing an inventory shortage. Unfortunately, some experts think that the chip shortage could last into 2023.
That’s the scoop on why there is a chip shortage for cars. While the pandemic continues we are open for business and Tower Honda of Longview is working on getting the parts you need. What’s more, we have a rotating selection of new and pre-owned vehicles that can fit your needs and budget right now. You don’t let the chip shortage hold you back from getting the car you need when you turn to Tower Honda of Longview!
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