Chip shortage to haunt automotive companies this year as well
Automobile companies have been struggling with the production of new vehicles for the past two years now, which eventually is the reason behind the long waiting period and delayed deliveries to the customers. The scarcity of semiconductors is the main reason behind this. The chip industry took a serious toll when the pandemic hit the world in 2020. As the restrictions eased over time the semiconductor manufacturing companies couldn’t keep up with sky-high demand and this year as well it doesn’t seem to resolve. Leading German carmaker, Volkswagen has expressed its concern about the ongoing shortage and says this year too they don’t see things to get back on track, however, it could get slightly better in the second half of the year. The shortage of semiconductors amid high demand along with supply-chain disruptions has put a significant dent in car productions all around the globe and eventually affected their revenues.