Why is There a Chip Shortage?

Microchip

 

There have been predictions of a chip shortage for years. So, why is there a chip shortage? The demand has been increasing as more and more technology requires the use of chips for operating. The infrastructure capacity was in need of an increase and the pandemic severely messed up the momentum of that process. Since the beginning of 2020 the demand has continued to increase, but the supply has been decreasing. Supplies, infrastructure, and the ability to transport has been seriously hindered by the pandemic.

This has made the process of getting a new car in Los Angeles and Corona more difficult. Yet, if you’re on the search for a new vehicle, you can still find new vehicles on our lot in Whittier. 

What is The Chip Shortage?

Chips, semiconductors, or microchips are the brains of all of our technology in Corona and beyond. The price of chips has continued to rise over the last few years as has been predicted for some time. So, what is the chip shortage? Well, it is a problem for people looking to buy a new car, as this is causing a shortage in new vehicles and making the prices go up. 

What Does This Mean For Car Buyers?

The chip shortage automotive industry is being hit hard, and there are predictions that 1.5 to 5 million less cars will be produced in the upcoming years. There are predictions that the shortages will continue into the coming year, and hopes that it will end by the beginning of 2023. There are also predictions that demand will decrease over the next year. 

Chat With Our Team at Ocean Honda of Whittier 

Are you still wondering, “Why is there a chip shortage for cars,” and, “what is the chip shortage in the automotive industry affecting?” Well, you can contact our team at Ocean Honda of Whittier in order to learn more. If you are on the hunt for a new car in Corona, West Covina or Los Angeles, our team can help you find your new to you car at the best price possible during the challenges presented with the chip shortage. Contact us today to test drive a vehicle!

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