No Quick Fix for Auto Chip Shortage
Over-reliance on TSMC and soaring cost of old gear limit capacity expansion
The production shortage plaguing the market for automotive chips is a combination of new and old problems, none of which can be easily solved.
Ford Motor was the latest auto maker to show the fallout. The company said on February 4 that it is cutting production by up to 20% in the first quarter due to its inability to procure enough chips.
Rival General Motors said a day earlier that it planned to trim production at North American factories due to the shortage.
Volkswagen sounded an early warning in December about the issue, which is affecting auto makers across the board that need chips to control everything from infotainment systems to power management to systems monitoring.
The problem stems from…
