Things to Know About the Semiconductor Chip Shortage

Microchips are used in just about everything these days from cell phones and tablets to the less obvious like the battery in your power tools. For vehicles, chips are used throughout for everything from your vehicle’s connectivity, electrification, as well as safety assistance. The current semiconductor chip shortage has led to reduced vehicle inventory on dealership lots across the world and even in Fishers.

Things to Know About the Semiconductor Chip Shortage

The purpose of semiconductor chips

With time, vehicle technology has changed and modern vehicles closely resemble computers on wheels. Semiconductor chips are responsible for many of the vehicles features we enjoy today like sensors, cell phone integration, heads up displays, and more. The auto industry’s innovation with semiconductor chips has led to features like blind-spot detection, cruise control, emergency braking system, and backup cameras.

Why is there a shortage?

While demand for electronics surged at the beginning of the pandemic, major factories closed due to lockdowns which led to a shortage. Semiconductor chips are used in smartphones, laptops, video game consoles, televisions, and more. With supply down and demand up, several car companies had to halt production. Modern vehicles often have thousands of semiconductor chips.

When is the shortage projected to end?

It’s currently estimated that supply of the chips will start to catch up to demand in 2022, although some experts think the shortage could be longer than that.

What should I do if I’m car shopping now?

Our team at Ed Martin Nissan of Fishers knows limited vehicle inventory can be frustrating and we want to help. Swing by our Fishers, IN Nissan dealer to see our inventory or you can use the Find My Car feature to let us know what you’re shopping for and a member of our team will contact you with next steps.

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