Day: January 20, 2021

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The development of exterior combustion engines is detailed as a part of the historical past of the automotive however typically treated separately … Read More

A Year of Poor Planning Led to Carmakers’ Massive Chip Shortage

(Bloomberg) — Near-sighted planning, supply-chain complexities and a tradition of keeping inventories low caused the semiconductor shortage that is now forcing carmakers to idle production lines and straining their relationship with chip manufacturers.

Seeds of the imbroglio were sown almost a year ago as the virus outbreak led to plunging car demand, prompting auto-chip companies to slash orders. But when they wanted to increase supply toward the end of 2020, they struggled to secure capacity at Taiwan Semiconductor Manufacturing Co. and other contract chipmakers that were busy servicing a boom in demand for gadgets that help housebound consumers stay connected, according to people familiar with the situation.

While publicly assuring the problem is solvable, in private the parties are pointing fingers. Chipmakers say car companies’ preference for low inventories hurt their planning, while auto and part manufacturers say the supply chain is thrown into disarray as semiconductor makers drag their

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