Automakers will be producing their chips by 2025 - Report

While the entire automobile sector is facing a decline in sales due to a shortage of semiconductor chips, some major manufacturers have decided to manufacture semiconductors themselves because of this. According to a report, most auto-basic equipment manufacturers (OEMs) are planning to design and produce their chips by 2025. This will provide an opportunity to speed up electrification as well as overcome the continuous losses.

What are semiconductors?

Before you learn about semiconductor manufacturers, you need to know what they are. The situation between the semiconductor conductor and the insulator. Their electrical conductivity is less than that of drivers, but more than non-conductors. It is used to control electricity and is a silicon chip used in electronic objects. Without semiconductors, we cannot imagine electronic objects.

What does the report say?

A report by technology research and consulting company Gartner says that the trend towards electrification and lack of chips is motivating nearly half of the top 10 auto-original equipment manufacturers (OEMs) to design their chips. This will help car manufacturers overcome the shortage in the supply of semiconductors. It will also reduce the monopoly of some companies in the market.

Lack of semiconductors has boosted the desire for control – Gartner

Gaurav Gupta, Research Vice President, Gartner, said, "The automotive semiconductor supply chain is very complex. In most cases, traditionally the suppliers are from the IV tier or III tier category. "Vehicle manufacturers who usually take some time to adapt to factors affecting automotive market demand and the lack of supply of semiconductors has increased the desire to have greater control over the supply of automotive OEMs," he added. "

Sales of cars will be normalized in upcoming years – Gartner

The General Gartner report also said that the introduction of original manufacturers in new services will normalize the sale of new cars in the coming years. In the US and Germany, the average price of a new vehicle is expected to be around $50,000, putting more emphasis on repairing older vehicles. In addition, the market is expected to see a boom in upgrading old cars and their parts.

These companies are making semiconductors

Ford and General Motors are currently planning to manufacture these chips in addition to the original semiconductor manufacturers. Ford has also entered into a strategic partnership with a chip manufacturer called Global Foundries to help accelerate the construction of semiconductors in the US. General Motors is working with about seven semiconductor manufacturers. Tata is also set to set up semiconductor assembly plants in three states of India.