semiconductor chip
Ryan Darby

Ryan Darby

Ryan is the Content Marketing Executive at Carparison, keeping you up to date on our socials. He also takes the lead on our fantastic car reviews, and with his experience, is the perfect person to make sure you have all the information you need.

Supply and demand issues are causing worldwide delays for computer chips

A worldwide shortage of semiconductor chips is causing a major headache for some of the leading car manufacturers, who have had to confirm lengthy delays on some of their vehicles. 

The COVID-19 pandemic has caused major disruption throughout the automotive industry and the knock-on effects are now being felt by many.

With a large portion of motorists either off work or driving considerably less over the past year, changes in buying patterns were expected in what has turned out to be a hugely unpredictable environment.

While some changes may have been predicted, one of the unexpected problems has come in the form of the materials required to build these new models.

It has been reported that many manufacturers are struggling because of a semiconductor chip (or as they’re more commonly known: computer chips) shortage, as the supply has been so heavily focused on products like smartphones and tablets during the pandemic.

As a result of this, some manufacturers are being forced to delay deliveries and issue extended lead times to customers of up to six months in some cases. 

The lack of chip supply is forcing manufacturers and the car industry to change how they’re working. 

Toyota are one of the many manufacturers to confirm, via the Irish Times, that some of their European factories were experiencing sizeable delays.

The Guardian recently reported that consumers could see price hikes for products like mobile phones or TVs as a result.

Mercedes Benz touchscreen

What is a semiconductor chip? 

A semiconductor chip controls the flow of current through electronic equipment. To put it simply, these chips are the brains behind all our electronic devices.

They are especially important within cars, as they help power systems like an onboard computer or a touchscreen.

It is not just the visual elements of a car that they help operate, but crucial safety features too, like the anti-lock braking system, lights or windows.

semiconductor chip photo

Why is there a global shortage of semiconductor chips? 

It has been suggested that a ‘perfect storm’ of increased supply and demand happened at once during the pandemic.

Over what was only a matter of months, we witnessed a rapid rise in consumers buying personal computers, monitors and other necessary equipment to work from home.

As well as that, Sony and Microsoft have both launched new PlayStation and Xbox game consoles, while smartphones and tablets continue to be in high demand.

With COVID causing a natural delay in everyone's working habits, the supply has been far outweighed by the massive surge in demand.

Car delays 2021

Following a rise in media coverage on the shortage of computer chips, manufacturers are beginning to respond to the potential delays.

The true extent of these delays are likely to vary between manufacturers and countries that they're operating in, so it can be difficult to put a specific time frame on the issue.

While some manufacturers are experiencing delays, we have a wide variety of in stock car lease deals ready to go here at Carparison. Whether you’re searching for a Mercedes C Class lease or Skoda Octavia lease deal, we have some seriously competitive deals available and are ready to offer delivery on our in-stock cars now. 

When will the microchip shortage end?

The semiconductor shortage is predicted to run throughout the second half of 2021, with things reportedly getting worse before they get any better. Experts fear it could run in some form until at least 2023, as the market recovers. 

This has placed a greater importance on our ability to provide customers with in-stock vehicles. Carparison offer some of the best car leasing deals available in 2021 and get help find you your next vehicle in suitable time.

View our latest in-stock vehicles to find the perfect personal lease deal or business contract hire offer today