If you have been paying attention to the news, you may have heard there has been a semiconductor shortage. As a result of this shortage, the technology industry has been adversely affected, especially electric vehicles (EVs).
A semiconductor is neither an insulator nor a conductor but has certain properties of both. It is usually made of silicon and is thus often called a “silicon chip.” Semiconductors are widely used to make computers, smartphones, LED lights, and solar panels. How exactly do these shortages work and affect electric vehicles and future technology? Keep reading to find out more.
Why Is There a Semiconductors Shortage?
There has been a semiconductors shortage for various reasons; for example, because of supply chain issues and increasing demand for semiconductors, a change in manufacturing processes, and a decrease in the supplies needed to build semiconductors. As a consequence, supply is currently outweighed by demand.
The shortages are also increasing because of the increasing demand for laptops, tablets, smartphones, and other electronic devices. While most people are now working remotely, the demand for more technology has increased. People now need laptops at home, second monitors, and some even need company cellphones. With the increasing demand for these items, manufacturers are finding that they aren’t able to make semiconductors fast enough to put them in these devices.
How Do Semiconductor Shortages Affect EVs?
The automotive industry is one of the biggest consumers of semiconductors. Thus, EVs and autonomous driving vehicles are largely affected by semiconductor shortages. Electric vehicles have up to twice as many semiconductors compared to regular cars. A typical powertrain could have anywhere near 600, and the inverter has around the same.
How Do Semiconductor Shortages Affect Technology and Manufacturing in General?
Semiconductor shortages affect future technology mainly in two ways. The first is that developing and upgrading new products will become more difficult, as manufacturers will have to use older models of chips and parts. Because they can’t use the latest technology in their devices, their processing speeds slow down and their memory gets reduced. Thus, they can’t use the latest technologies in their devices, which can slow down processing speeds or reduce memory.
The second way the semiconductor shortage has restricted product innovation is through price increases for goods and services. With fewer chips available on the marketplace, companies will have to pay more for them. Consumers will have to pay higher prices at retail stores because manufacturers have to pass on the rising cost of manufacturing more semiconductors.
Hopefully, this post helped you learn how semiconductor shortages impact EVs and future technology. This gives us an insight into the future of technology and supply chain management as well as how manufacturers will make products ranging from smartphones and laptops to electric vehicles (EVs). To find out more about semiconductor shortages, get in touch with K. Alexander Creative Consulting today.