The global chip shortage has had a significant impact on car production. Automakers are expected to lose billions of dollars in earnings this year due to a shortage of highly important semiconductor chips. The shortage has even impacted the car rental industry’s ability to receive new vehicle orders as quickly as they would like.

Some companies have adapted by supplementing their fleet by purchasing low-mileage, preowned vehicles from auctions and dealerships. Others have suspended operation at some plants to focus efforts on truck assembly, where the margins are better.

Semiconductor distributors are taking several measures to address the chip shortage. Some companies are designing for availability, leveraging AI, and focusing on reliable logistics. Others are expanding their supplier base, strengthening pricing strategies, improving chip allocation to customers, working with industry organizations to explore solutions to the chip shortage, and inviting customers to co-invest.

Governments and chip manufacturers around the world are also taking action to expand production and prevent such shortages from occurring again. They are formulating plans that include measures to ensure that future supply chains for computer chips are resilient.

While some industry insiders speculate that the chip shortage may come to an end in 2023, it is still uncertain when exactly it will be resolved.