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EV market and chip shortage

Car companies hoping to avoid the production delays confronted in 2021 are striking deals directly with chip makers and racing to secure

Carmakers continue to confront and struggle with the persistent chip shortage that’s expected to cost them more than $200 billion in sales this year.

The shortage hit in mid 2020; heading into the 2022, and most probably extending into 2023, as many in the chip industry now expect.

Before the pandemic, carmakers used to rely on what they referred to as their “tier one” suppliers to deal with semiconductor providers.

Now they are racing to cozy up to the companies that produce physical chips for everything from smartphones to vehicles, striking partnerships and deals to lock in direct supply lines. ​​​​​Competition remains stiff, as mobile technology chip designers, typically favored by foundries over auto customers, are aggressively moving to lock in sufficient supply.

Whilst, auto industry moves include:

 ​BMW AG signed an agreement with Inova Semiconductors and GlobalFoundries Inc., guaranteeing the supply of “several million” chips per year.

Ford has forged a “strategic collaboration” with GlobalFoundries to explore buying directly from the U.S chip maker.

General Motors Co. is planning to jointly create chips with producers including Infineon Technologies AG and Taiwan Semiconductor Manufacturing Co.

Stellantis NV has inked a deal with Foxconn Technology Group to develop automotive chips together.

SAIC Motor Corp’s invested 500 million yuan in auto chip startup GTA Semiconductor Co.

Tesla reportedly is exploring the option of buying a chip plant

According to news reports last spring.Car companies are into the adoption stage and highly relied upon on supply and demand , considering that the shelf life of certain chips is short, this year EV will continue to face shortage of chips , as consumers are looking into mass adoption of the electrical hype that has been spearheaded by Tessa , ever since pandemic hit the world