The supply-demand imbalance, according to analysts and chip executives, may persist for years.
Since late 2020, when a comeback in vehicle sales caught corporations off guard after they had previously planned to limit chip purchases, auto producers worldwide have been struggling with a shortage of semiconductors. Electronics manufacturers competed for a limited supply of customers with auto producers, whose demand was boosted by consumers who stayed at home.
Now that the demand has subsided, fewer smartphones are being sold. Meanwhile, the automobile industry has continued to be very robust.
Analysts claim that some of the issues facing the auto sector may even intensify as time goes on.
