Friday, March 31, 2023

Automotive industry cuts chip orders, car demand slows

It was an open secret, and really, it wasn’t such a secret. The automobile industry has tried to get ahead of the times… and it’s proving itself. World macroeconomic data forecast a difficult 2023 and the transition from combustion cars to electric in most parts of the world has not been easy. in particularly USA and Europe, where being the same car range the prices increase for each new model launched. Well, the users’ rebellion towards this new type of sustainable mobility is making itself felt and the downturn in the automotive industry is already here: Stop ordering chips for cars.

The chips were missing “by a tube” and in this first month of January it has woken up from the lethargy of the impulse that competition from China is supposed to be for the world. In the Asian country, money is being injected into baskets so as not to face a real estate crisis and drag down the entire economy with it, the doors to normality have been opened in the face of COVID and … result is not as expectedNor was it in the West.

China Slows Down and the West Breathes: Adjust Car Chip Orders

We’ve already talked about how the competition to acquire chips among China’s main automotive companies was intensifying. even had a black market for chips To continue producing cars. That’s going to end. The interesting thing is that now there is excess production capacity, there are closed scanners, closed production lines, mainly because our sector, which is the sector of information technology and technology in general, is suffering from poor sales. Has stood up for

Well, with record numbers in Europe in terms of zero car sales, especially in Spain, which lost a very high percentage of sales, it was to be expected that chip fever would end at some point, and it has. Is.

As reported from Asia, Automakers are significantly adjusting their chip demand structureWhich shows a huge problem.

Semiconductor maker in trouble


The automotive industry was one of the sectors that was squeezing companies like GlobalFoundries, TSMC or Samsung, for example, and was pulling chestnuts out of the fire, but now … now we guess already at the beginning of the week were putting Stopping TSMC production lines and falling below 70%.

The numbers could be even worse if, indeed, Asia brakes like Europe and the US. What awaits us here? We still don’t know for sure, specific figures haven’t been revealed, but what’s certain is that money is making its way directly into the bank accounts of a dozen companies around the world.

Big-Tech’s Settings Are There for a ReasonThe boom in the markets this January is a mirage that central banks are about to heave with the next rate hike. the hardware market is about to end And they’re determined to keep prices up, just like the automotive industry, which is watching how Chinese cars reach more than competitive prices in Europe and the US… and they know they’re there Can’t compete, nor do they have. I was able to do it on a smartphone.

China will dominate the world, and for it to be cold and slow in an industry at the forefront of technology is a sign that something is wrong.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news