What is Causing the Chip Shortage?

Are you having trouble finding an affordably priced new Buick or Chevy in the Evergreen area? That’s a direct result of the current chip shortage that is affecting all sorts of industries, including automotive. Not sure what the chip shortage is? Curious as to what is causing the chip shortage? Find out with the experts at Lee Motor Company. If you have any questions along the way, don’t hesitate to contact us at Lee Motor Company for more information! We’ll help you find not only an affordable car but also help you to plan your next car. 

What is the Chip Shortage for Cars?

Newer vehicles are estimated to use roughly 1,400 to 3,000 microchips per year, which is why the global automotive industry makes up 15 percent of the world’s chip production. However, a recent trade war between the Chinese and U.S. government, a drought in Taiwan, and the effects of the COVID-19 pandemic have resulted in a massive automotive chip shortage. 

For starters, the China-U.S. trade war has made it incredibly difficult for chip producers to export to foreign markets. Secondly, Taiwan, which produces an astounding 53% of all semiconductors globally and depends on massive amounts of fresh water for production, suffered reduced productivity due to a severe drought. Lastly, the Coronavirus pandemic causes countless microchip factories to suspend production. Although these factories are currently playing catch-up, the ripple effect of the global shutdown will be felt for years to come. 

But not everything is as bleak as it seems,p[n as efforts are being made in the US and other countries to begin ramping up manufacturing processes outside of Taiwan. However, these facilities have to undergo extensive processes to make them clean enough for the production of semiconductors and other chips, as even a tiny speck of dust can cause a chip to fail. A microchip factory has its air filtered to contain 1,000 times fewer airborne particles than the inside of a hospital surgery room! 

Adapting to the Automotive Chip Shortage

Now that you know what chip shortage is, it’s essential that you understand the most effective strategies to secure a good deal on your upcoming car purchase. Prices of used vehicles should lower and normalize once the supply of new vehicles replenishes for Brewton and Atmore drivers. However, if you’re in urgent need of a new or pre-owned vehicle, we encourage you to keep the following tips in mind to save yourself some money:

• Review Vehicle History: Once you’ve found a used model that you are interested in, carefully review the vehicle history. Ideally, you want a vehicle that has a clean title and has been kept up to date on all scheduled maintenance. 
• Remain Open-Minded: Be flexible when it comes to the used cars that best suit your needs. Limiting your search to a specific model and trim will force you to compromise on a vehicle that’s pricier than you can currently afford.
• Comprehensive Research: Take advantage of appraisal sites like Kelley Blue Book and Edmunds.com to ascertain which used cars have the longest lifespan. 

Find Affordable Cars at Lee Motor Company Today!

Have a better idea of what is causing the chip shortage? Then you can take advantage of the services offered at Lee Motor Company so that you can find the model that works best for you, whether that’s a brand new Chevrolet, GMC or a used model from our inventory. And don’t forget, you can save even more by using our new and used vehicle specials.