Many Morgan Hill drivers have been asking us at Victory Honda of Morgan Hill, “Why is there a chip shortage, and how will it impact me?” If you’re wondering what the chip shortage is about, Victory Honda of Morgan Hill is here to help. Learn more below about why there is a chip shortage for cars in San Jose and around the world, and don’t hesitate to contact us at Victory Honda of Morgan Hill if you have questions. We’re here for you, in good times or bad.
What is the Chip Shortage About?
In technology, the term chips refer to semiconductors, sometimes called microchips, which act as the brains of our electronic items. The manufacturing of chips involves multiple steps, days, people, companies, and transportation. Even before the pandemic, the demand for microchips exceeded supply. Now, a shortage of workforce due to Covid and transportation issues is making the shortage worse. In addition, the number of chip manufacturers has declined dramatically. During the 1990s, 37 percent of microchips were made in America, but by 2020, that number dropped to only 12 percent.
Automotive Chip Shortage
Unfortunately, the chip shortage in automotive is impacting the amount of inventory available to customers. The reason is that auto manufacturing companies must predict the number of chips they’ll need to make their cars and order them well in advance. Currently, it can take half a year or more for a chip order to be filled and delivered. The current demand for chips is so high that along with reducing inventory, it’s also raising the price of all consumer goods, including new vehicles around Sunnyvale.
Victory Honda of Morgan Hill is Always At Your Service
Now that you no longer need to ask, “Why is there a chip shortage for cars?” let us know if we can be of service at Victory Honda of Morgan Hill. We are conveniently located near Watsonville, not far from Morgan Hill, and we’re always happy to help. We’re just a phone call or click away. From auto service to a new Honda, car parts, or car care tips, turn to us for all of your automotive needs. We can even help you with auto loan financing, so reach out to us today.
