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What Is The Chip Crisis

What Is The Chip Crisis?

Recently, we have started to hear “chip crisis”. Also this crisis is increasing its effect day by day. The main reason for this crisis, which is particularly effective in the automotive sector, is the fact that there are some difficulties in the supply of chips used in vehicles. The problem has become important and world-famous manufacturers decided to temporarily stop their production. When the pandemic is added to this situation, it remains uncertain when the production will start.

Chip crisis started with the pandemic.

With the coronavirus pandemic that started in China in January 2020, chip manufacturers have started to shift their production to the fast-moving consumer electronics industry. For this reason, the chip requirement for the automotive industry was mostly met from stocks. The fact that the pandemic lasted longer than anticipated. Therefore these stocks were melted quickly. The chip manufacturers turning to the electronics sector began to be unable to produce chips for the automotive industry.

Toyota and Honda decided to suspend their production temporarily.

With the pandemic, the adverse weather conditions began to be effective. Thus, Toyota and Honda, one of the global automotive giants, to stop their production. The two big companies stopped production in North America due to supply chain disruptions. According to the statement made by Toyota, the company will resume production as the chip supply increases. However, the situation remains uncertain. So the authorities did not give a clear date to start production. On the other hand, Toyota is a company that has a very strong supply chain but they have some problems due to chip crisis. This situation confirms the magnitude of the crisis definitely. 

Scandinavian automotive giant Volvo has stopped its production.

Scandinavian automotive giant Volvo has also decided to stop its production. Main reason for this, distruptions that occured in chip supply. Volvo is among the companies most affected by the chip crisis. The company’s senior executives anticipate serious problems in production, especially in the second quarter of the year.

Chip crisis spread to Turkey.

Chip crisis spread to Turkey quickly. Oyak Renault has decided to suspend its production between 15-22 of March. Oyak Renault General Manager Dr. Antoine Aoun emphasized that high-tech components are important. Especially used in the production of vehicles such as the New Clio and Megane Sedan. So the chip supply is important. Like Volvo, Oyak Renault officials predict that the crisis will deepen in the second quarter. Experts expect the chip crisis to grow in future. Because the pandemic not losing its impact in Europe. We will see what will happen in the future and how this situation will follow.

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