Why is There a Chip Shortage?

You may have noticed that car dealerships around Livonia and Detroit may have fewer new vehicles on their lot than normal. This situation is due to the chip shortage in automotive. What is the chip shortage? Why is there is a chip shortage in cars? You’ll learn about all the factors that went into creating this chip shortage in auto below with Victory Honda of Plymouth!

What is the Chip Shortage & What Caused It?

So, why is there a chip shortage for cars? What has the chip shortage been caused by? A factory fire, the current pandemic, and weather disasters have all played a part in causing the chip shortage in automotive. Get the details below:

• Many of the semiconductor chip factories closed down due to the Covid 19 pandemic.
• Car manufacturers also were forced to shut down during the pandemic. This caused them to cancel orders and lack the chips they needed when production resumed.
• Demand for computer chips increased, as more people were spending more time at home and wanted more devices like tablets and game consoles to pass the time.
• Some of America’s few chip factories to shut down for some time due to winter storms in Texas.
• A severe factory fire took place at the Renesas plant in Japan, which produces a third of the world’s computer chips.
• COVID-19 also caused China’s Yantian port to shut down for a while, worsening the chip shortage since 90% of the world’s electronics are shipped through that port. That port has since opened up, but the shutdown caused a severe backlog of shipments.

Explore Our Current Vehicle Inventory in Plymouth

The chip shortage is expected to last into 2023, but that doesn’t mean you can’t find vehicles in Plymouth. Victory Honda of Plymouth still has an ever-changing inventory of new and used models on our lot, and financing to make it easy to get into the model you have your eye on. Contact us today for more information on the chip shortage in auto, or to schedule a test drive!