Chip Problem Gets Serious

The chip crisis affecting both Turkey and the world gets serious. Many automotive companies decided to stop their production due to the supply problems of chips.

First of all, we need to ask questions about what a chip is and where it is used. We can say that a chip is like a transistor and it conducts electricity. An average of 20 chips are used in a car and these chips manage systems such as airbag, ABS, ESP, parking camera, parking sensor, parking assistant, electronic parking brake, four-wheel drive system, engine, door, lighting, music system, infotainment screen, and microphone.

Chips are used not only in automobiles but also in household and office goods, computers, and telephones. Especially with the start of the pandemic period and the increase in the time spent at home, the chip problem has also emerged with the increase in the demand for these products. A total of $ 40 billion chips are sold in the world in January 2021 and this shows the demand intensity. It also indicates that manufacturers will not be able to keep up with this demand.

In Turkey, Bursa, Oyak Renault announced that it had stopped production for one week and Tofaş announced that it had stopped production for two weeks until April 5.

General Motors, Stellantis, Honda, Toyota, Hyundai, Suzuki, and Ford have announced that they will suspend their production due to the global chip crisis. GM and Ford stated in their latest statements that they had to suspend production in more facilities.

General Motors, which was affected by the growing chip crisis day by day, stated that it will continue to reduce its production in USA due to the chip supply problems. The automotive firm will cancel some shifts at its Fort Wayne, Indiana, and Flint, Michigan assembly plants.