Auto Sector’s Semiconductor Shortage Likely to Ease in Late 2021

The COVID-19 pandemic impacted automobile sales in H1 2020. But
as the demand started recovering in H2 2020, the semiconductor
shortage crisis hit the automobile industry too. The chipset
production capacity is already stretched by the rise in demand
from smartphones and laptops due to work-from-home and
learn-from-home. As a result, the semiconductor shortage faced by
the automobile industry is unlikely to ease before late 2021.
Some automakers have already been forced to slow down their car
sales due to production delays.

In the latest episode of ‘The Counterpoint Podcast’, host Peter
Richardson is joined by Research Director Dale Gai to discuss the
semiconductor chip shortage faced by the automotive sector. Dale
weighs in on points like how the capex boost will not solve the
shortage problem. He also shares his views on the foundry
industry’s revenue growth, and challenges and opportunities for
Chinese semiconductor manufacturers like SMIC.  

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