The Microchip Shortage and Your Vehicle

microchips used in auto manufacturingDid you know that a typical car relies on anywhere from 500 to more than 1,500 microchip processors? According to Ken Wysocky of, they are instrumental to your cars electrical systems and components.

Automakers expect to only sell 13 million cars this year, down from a forecast of 18 million. That adds up to a big loss for the industry overall.

So how did this happen?

COVID-19 shut down the fabrication facilities for the microchips, both here and overseas. “At the onset of the pandemic, the auto industry’s supply-chain managers pared back their (microchip) forecasts, thinking the pandemic would decrease sales,” explains John Dallesasse, a professor of electrical and computer engineering at the University of Illinois.

But what they didn’t take into account was that millions of employees would be working from home and their children would be going to school on Zoom, which created an extensive demand for electronics. So the microchip manufacturers shifted their attention to electronics and away from automakers.

Then demand for cars started to rise again, and the manufacturers started running out of microchips. Meanwhile, chip producers were dealing with their own problems, like COVID outbreaks among employees and a fire at a Tokyo microchip plant, which halted production from a major producer for 30 days.

Ramping up production of the highly complex microchip takes a lot of time and money. Industry experts predict that the shortage may start to ease by spring of 2022, although car prices may stay high through 2023 as a result of the shortages and increased demand.

So hold on, the shortage won’t last forever. There is light at the end of the tunnel. But in the meantime, continue to expect higher prices on new vehicles.

Your best bet?

Keep the vehicle you have and let HI-TECH Auto help you keep it running smoothly!  Call us today for your service needs at 636-928-6050.