Why is There a Chip Shortage?

Microchip

 

Certain new models are getting harder to come by at car dealerships in the Elmwood Park area, but why? There is currently a chip shortage in the automotive industry. Why is there is a chip shortage? You can get in-depth information about the current chip shortage situation with Victory Toyota of Midtown.

 

 

What is the Chip Shortage Cause?

What is the chip shortage cause? In truth, there are multiple events that lead to the shortage. While the pandemic played a big role, so did weather and other issues. See what conspired to create the chip shortage in automotive below:

Why There is a Chip Shortage in Automotive?

  • Harsh winter storms took Texas by surprise and caused the closure of some of America’s only chip factories.
  • Japan’s Renesas plant, which is responsible for manufacturing a third of the world’s computer chips, experienced a severe factory fire.
  • The closure of China’s Yantian port also worsened the chip shortage, since 90% of the world’s electronics are shipped through that port. While the port, which originally closed due to the pandemic, has been reopened, there’s still a backlog in orders.
  • Many of the world’s semiconductor chip factories were forced to temporarily shutter their doors due to the pandemic.
  • When car manufacturers were forced to stop production due to the pandemic, many stopped ordering chips. When production was able to resume, this meant they didn’t have the chip inventory needed to meet the new demand.
  • With many people spending their days working, playing, and attending school at home, the demand for chips for computers, tablets, and game consoles increased.

Check Out the Vehicles Available Today at Victory Toyota of Midtown

While many experts are predicting the chip shortage to last into 2023, you can still find vehicles in the Chicago area. Victory Toyota of Midtown has numerous used models in stock, as well as some new models for you to choose from. Explore our inventory online to see what we have available, then reach out to the associates at Victory Toyota of Midtown if you could use help finding the right model. Once you do, you can book an appointment to take one out for a test drive today!

 

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