Business Standard

Explained: How chip shortage is impacting automakers, other industries

Everybody in the ecosystem is hoarding, or buying excess chips. Some are even buying four times their usual requirements

semiconductor
Premium

The global shortage of chips is also due to geopolitical factors

Neha Alawadhi
Time was when you turned on your car’s ignition, all that happened was that the mechanical system fired up your engine and made it run. 

Today, the moment you do so, your stereo system probably lights up, connects to the Bluetooth on your smartphone, and lets you make calls through an audio assistant or play music from your phone, which you can hear on the car’s speakers.

All these smart features in a car are powered by semiconductors, or chips, as they are commonly called.

“We probably still remember how cars used to have cassette players or CD players, and

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 20 2021 | 6:03 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com