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Why is There a Chip Shortage?

Microchip

 

At this moment, many of you Clearwater to Wesley Chapel drivers might be confused and asking, “Why is there a chip shortage for cars?” and what the chip shortage in automotives means. At Ocean Honda in Port Richey we’ll be able to explain the chip shortage in the automotive industry and how it’s impacting our new vehicle arrivals and technology. So, why is there a chip shortage for cars? Read on to find the answer. 

What is the Chip Shortage? 

Right now, the world is experiencing a global chip shortage for many pieces of technology that directly impact you in %%taget_city_2%%. The chip shortage in the automotive industry has been constant and climbing. So, what is the chip shortage exactly? Before we answer that, let’s cover what these chips really are. 

The chips that everyone is in desperate need of are called ‘semiconductors’ or microchips. Oftentimes these chips are the powerhouse of anything electronic. Your vehicle, TV, phone, fridge, and much more. However, you might be asking yourself, “if these are so important why is there a shortage of them?” Well, these chips vary in size but they take several steps and days to construct. The demand for these chips, which is exceptionally high, exceeds the supply.

Why is There a Chip Shortage for Cars? 

Due to the COVID-19 pandemic, many factories and warehouses which manufactured these chips have closed or were closed for a period of months. With even a few months of closure, it made materials unavailable for months which has set the world back for…months. With everything becoming so advanced in technology, it’s natural that the increase in demand for electronics has increased which affects the supply chain. 

How Did the Chip Shortage in the Automotive Industry Affect Us? 

For car companies like Honda and all others, these chips are needed to produce each and every vehicle. Many car companies would typically order chips in advance, now, it can take anywhere between 6 months to one year to fulfill a complete chip order. In combination with factories, ports have been shut down, causing hundreds of shipping containers to be waiting at docks which caused immense delays. 

Contact Us with Questions at Ocean Honda 

If you have any questions about the chip shortage in automotives industry, contact us for more information. We’re here to help you decide if you rather lease or buy too!

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