Will the Chip Shortage End in 2023?

A global shortage of semiconductors has had a major impact on the automotive supply chain, forcing automakers around the world to cut production over the last two years due to the lack of these crucial parts. As COVID-era regulations begin to relax, some – but not all – industry insiders speculate that the chip shortage may come to an end in 2023.Get more news about Original New Automotive Grade Chip,you can vist our website!

Automotive manufacturers are still dealing with the effects of the microchip shortage that began in 2020. Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told reporters that he believes the industry will see 2-3 million units cut from production in 2023.

This figure highlights the continued production difficulties that manufacturers face. However, if Fiorani’s estimate holds true, it would mark a significant improvement for the industry.

More than 10.5 million vehicles were cut from production in 2021, according to Auto News. In 2022, automakers around the world cut an estimated 4.3 million cars from their production schedules. Losing 2-3 million units would still be a hardship for manufacturers, but it would indicate that supply chain issues are beginning to ease.
Many key players in the semiconductor industry are feeling positive about the direction of the chip shortage in 2023, according to a recent poll. Multinational accounting firm KPMG and the Global Semiconductor Alliance (GSA) conducted the 18th annual global semiconductor survey in Q4 of 2022.

The poll asked 151 semiconductor executives about their outlook for 2023 and into the future. Of those executives, more than half represent companies posting more than 1 billion USD in annual revenue.

Based on the results, the Semiconductor Industry Confidence Index for 2023 currently stands at 56 out of 100. This score indicates that a small majority of respondents have a more positive outlook for 2023 than negative.The survey asked semiconductor executives when they think the chip shortage will subside. Of those, 65% said that they believe the shortage would end in 2023 while 20% said they believe that it would extend into 2024 or later. Around 15% of respondents said they believe chip supply and demand are currently balanced.

Executives were also asked when they believe there will be a net excess of semiconductors. Around 31% said they believe there will be a surplus by the end of 2023, while 24% stated that they believe there is already a semiconductor surplus. That means that over half of respondents think that we will see a surplus in this calendar year, if we haven’t already.

However, 36% believe that the next surplus won’t happen until between 2024 and 2026, and 9% said they believe the industry won’t see a surplus at any time in the next four years.