Car Chip Shortage To Last Into 2024

May 2, 2022 3 min read
Car Chip Shortage To Last Into 2024

I think that’s pretty optimistic, all things considered…

If you’re more than tired of how much cars cost these days, thanks in large part to the microchip shortage, you’re not going to like what Intel CEO Pat Gelsinger said in an interview with CNBC on Friday. He anticipates the supply shortages for computer chips will last into 2024.

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According to Gelsinger, a shortage of manufacturing tools is keeping his company and others from meeting current market demands. That’s why he’s walked back his earlier estimate of this situation dragging on only until 2023.

In other words, Intel and other chip manufacturers are having trouble ramping up the new factories they’re building in the US. It’s almost like someone has intentionally sabotaged chip manufacturing, but that’s just a crazy conspiracy theory. However, if you wanted to hobble the economy, push inflation, etc. this would be a great way to do it.

Automakers have struggled sourcing other materials and not just microprocessors. You can blame it on the pandemic, but the true culprit was the panicked shutting down of everything, sequestering the healthy at home, then paying workers to stay home. That devasted economies and caused industry damage we’re only now starting to fully understand.

I wouldn’t be the least bit surprised that come next year, the estimate for the chip shortage to be over will extend into 2025. That’s been the pattern with this whole situation. It’s uncanny how it just keeps getting worse and worse. With the shutdowns in China, it likely will get worse, so brace yourselves.

There’s another thing to consider here: perhaps automakers need to admit they’re wrong. Many of them have worked hand in glove with US regulatory agencies, including the EPA and NHTSA, to push for rules which would require them to dramatically increase the onboard technologies in new vehicles. As a result, they’ve been gobbling up more and more chips.

If you’ve tried to repair or replace certain items on cars made in the last few years, you know the results all too well. For example, on some models a taillight can cost several hundred dollars or more, thanks to all the advanced sensors and other cool technology embedded.

I know this would never happen because it makes too much sense, but what if these government regulations were rolled back? It’s a crazy, radical idea since we’re intent on creating more laws, more regulations, more restrictions, never admitting we went too far, etc. Plus, all those meddlesome regulations keep the little guys from starting their own automakers, because they don’t have the resources to compete. It’s a great business model for giants in the industry who have come begging the taxpayers for bailouts, etc. in the past. Wouldn’t it be something if people started demanding this?

What if there were many more car brands to choose from, and they didn’t all look the same and charge ridiculous amounts for bloated, overly complex vehicles? Then everyone who wants to shell out for the cars that use too many chips and have alerts constantly harassing them can, and everyone else can enjoy the savings of choosing something with a manual transmission and taillights that cost $100 or less to replace. What a concept, but don’t expect the auto industry to just make it happen. If that’s what you want to see, start putting pressure on politicians and others or things are only going to get worse.

Check out the CNBC interview here.

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