The semiconductor crisis was, after the Covid period, a real nightmare to manage for manufacturers, with extended delivery times. Customers sometimes had to wait more than a year for their new model, enough to shake up a market already weakened by the pandemic. But in 2024, where are we with semiconductors?
After the Covid period in 2020, the automotive industry, and not only, went through an unprecedented crisis with the global shortage of semiconductors. These electronic components, essential for the proper functioning of modern cars, quickly became a real bottleneck for manufacturers.
The pandemic has profoundly disrupted global supply chains. In 2020, when lockdowns shut down the economy, demand for electronics such as computers, smartphones, and game consoles surged as consumers geared up for remote work and home entertainment. This diverted much of semiconductor manufacturing capacity to these technology sectors.
For their part, Car manufacturers had to scale back operations during the first months of the pandemic. Many manufacturers cancelled or slowed down their orders for semiconductors, underestimating how quickly demand for cars would pick up once lockdowns were lifted. As a result, when they tried to restart production, they found themselves facing increased competition for components that had become scarce. As a result, delivery times for some models have skyrocketed: more than 6 months for a new Peugeot 208 with a few options, or even more than a year for a Skoda Octavia plug-in hybrid!
The machine is jammed
The direct consequence of this shortage has been the drastic reduction in vehicle production. Major brands such as Ford, General Motors and Volkswagen have had to temporarily suspend the activity of certain factories or reduce the number of vehicles coming off the production lines.In 2021 and 2022, millions of cars could not be produced as planned.
This lack of supply has also resulted in an increase in the prices of new vehicles and a surge in prices on the second-hand marketwhere demand has shifted. In addition, the most sophisticated car models, which rely more on semiconductors for their safety and infotainment systems, have been particularly affected. Some manufacturers have even had to simplify certain equipment or delay the launch of new technologies.
Faced with this situation, governments and industrialists have sought to react. In the United States, the administration has launched plans to relocate semiconductor production, investing massively in local factories. The European Union, too, aims to strengthen its technological sovereignty. by boosting chip manufacturing on the continentCompanies such as Intel and TSMC have announced plans to build new production facilities.
But where are we in 2024?
In 2024, the semiconductor crisis continues to have an impact, but the situation is gradually improvingThe shortage, which had caused significant delays in industries such as automotive and electronics, is beginning to ease, although delivery times have not yet fully returned to normal.
Manufacturers continue to face extended production delays. Although manufacturers are ramping up production capacity, global demand, which had surged due to remote work and consumer electronics during the pandemic, is making recovery slow. Some experts say: the balance between supply and demand could be reached towards the end of 2024particularly with the increase in production capacities outside Asia.
Despite everything, this crisis now seems to be behind us, and the slowdown in new car sales in recent months should also help to restore a certain balance.
Source: www.autoplus.fr
