German semiconductor supplier Infineon warned on Tuesday that the automotive industry would have to wait until around 2023 before the semiconductor industry could normalize supplies.
The automotive industry was the first to experience the effect of semiconductor chip shortages after some companies like Ford, Volkswagen, and Jaguar have started shutting down factories, laying off workers, and slashing vehicle production.
“The global microchip shortage has impacted the entire car rental industry’s ability to receive new vehicle orders as quickly as we would like,” said a spokesperson from the rental car company Hertz.
The global coronavirus pandemic is responsible in part for this massive semiconductor shortage. The global lockdowns have forced everyone to migrate to a work-from-home setup, increasing the demand for new computers, phones, and other gadgets.
The crypto-currency mining industry is also consuming its fair share of the microchip’s supply as demand for video cards and ASIC miners are depleting the current inventories.
“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” wrote Glenn O’Donnell, a vice president research director at advisory firm Forrester.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip manufacturer, stated earlier this month that it will be able to meet the automotive industry’s demand by June.
TSMC is spending US$ 100 billion in the next three years to ramp up production.