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Automobile Companies Witness Shortage of Chips Amidst the Pandemic

As stated by a chief economist, the shortage of Chips across the globe is creating issues across several industries and does not indicate abating in the coming weeks. However, there would not be a price hike in all types of Chips, he says.

Among several industries being affected by the chip shortage, car manufacturers had the worse impact. However, the gaming console and television markets have also been under huge problems. Not all of the industries may have the same effects of the chip shortage. The possibility also states that there might be an oversupply of some other types of Chips to several industries, as Herrero of Natixis, Alicia Garcia, stated.

She further stated that the are some of the low-end in the market.The shortage is because of the emergence of China in that part of the supply chain, which great speed and huge investments she adds. Further, she said that there would be a segmentation of the cost of Chips.Garcia also said the prices of the lower-end are likely to be plummeting.

But the Chips that are in great demand due to the rise of 5G infrastructure and electric vehicles are likely to witness inflationary consequences in the next few months.As per the trusted sources, the continuous ongoing supply of the was disrupted by companies that are piling up the number of amidst the ongoing pandemic of COVID-19 infection across the globe, which has driven the fear of supply companies.

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