How global semiconductor chip shortage impact on automobile industry.

Semiconductor chip shortage

 

Hi, welcome to all of you once again on your blog site. Today we will know about how Global semiconductor chip shortage impact on automobile industry. in this  session we will cover brief description about the Global semiconductor chip shortage impact on automobile industry . So requesting to you if you want to learn about this so please read this article carefully from beginning to end and I am confident that your attention during reading surely enhance your skill about Global semiconductor chip shortage impact on automobile industry and as we know we all carried out these things in routine basis. It means your knowledge will enhance and your competency will enhance in respect of Global semiconductor chip shortage impact on automobile industry.

 

 In this blog we will cover the below content:

  • What are semiconductor?
  • Properties of semiconductors
  • How semiconductors chip works:
  • Manufacturing process of Semiconductors.
  • Applications of semiconductors.
  • What caused the semiconductor chip shortage?
  • Impact of semiconductors chip shortage

 

What are the Semiconductors?

The term namely derived from Conductor as we know conductor is substance that conduct electricity called as conductors and does not conduct electricity called insulators.

And the Semiconductor lies in between both of them.

Basically semiconductors possess some specific properties. The electronic components such as diodes and transistors are made of semiconductors.

Semiconductor is made from basically two element named as silicon and germanium.

Now a days the use of Semiconductors became essential for electronic appliances as well as for other resources which are required to support in daily life.

 

 

 

Properties of semiconductors

The main key properties of semiconductors is resistivity. Conductors made from such as gold, silver and copper have low resistance so they conduct electricity easily.

And the Insulators which hare used generally named as rubber, glass etc. having high resistance which causes it is very difficult to pass electricity easily.

And if we talk about semiconductors as we earlier talked it lies in between of conductors and insulators.

 

How semiconductors works:

As we know semiconductors lies between conductors and insulators.

It means the resistivity of semiconductor might change according to temperature. That means at high temperature resistivity will be low and at low temperature resistivity will be high, which help to control the flow of electricity.

 

Manufacturing process of Semiconductors.

As we know semiconductor is a chip basically with multiple component and a designed circuit. Which is connected to wire or other component as per requirement.

Each semiconductor having a designed layout for controlling of connection and flow of electrons.

Below is mentioned the process for making semiconductors:

 

Process step -: Wafer processing

 

In the manufacturing process of making semiconductors electronic circuits with components as per designed are formed on the surface of a silicon crystal wafer. It is basic step for chip formation

 

 

Wafers Silicon substrate (wafer)

 

This is the step where integrated circuit ae being created and later on inspection is carried out as per defined standard to ensure the quality of integrated circuit. In case of defective part material is rejected and process is corrected as per design specification. In today world the largest size of silicon wafer is 300 mm in diameter and designers are doing experiments to increase the diameter to 450 mm for future use.

 

2) Front-end process and back-end process

This is another step of process for making Semiconductor devices. In which front end process (wafer processing operation) and the back-end process (assembly process) are carried out.

 

 

Applications of semiconductors.

As we know the main key properties of semiconductors is resistivity. Conductors made from such as gold, silver and copper have low resistance so they conduct electricity easily. That’s why it is used in multiple application from mobile phone to aeroplane, ship, car, home appliances, computers, laptop etc. Semiconductors having wide range of application.

 

 

What caused the semiconductor chip shortage?

As we know semiconductors lies between conductors and insulators.

It means the resistivity of semiconductor might change according to temperature. That means at high temperature resistivity will be low and at low temperature resistivity will be high, which help to control the flow of electricity. So that’s it maximize the use of semiconductor in today life. Semiconductors having wide range of application such as from mobile phone to aeroplane, ship, car, home appliances, computers, laptop etc.

Thing were going smoothly but lockdown due to Covid-19 pandemic, people were locked to their homes and all the activity which were carried out physically converted into virtual mode which increase the demand of general life items like mobile phone, fridges ,home appliances, computers, laptop etc. and the Semiconductors manufacturers get huge orders from IT service sectors  and in the same time the whole automotive industry was down so the manufactures accept orders and start supplying the material to other sectors.

And after lockdown when industry opened back and unfortunately the automotive industry achieved its boom phase quickly which causes demand of semiconductors increases.

But as we know making semiconductors is lengthy process so the manufactures cannot increase manufacturing on such a short notice.

 

 

The world’s largest contract chipmaker which is Taiwan Semiconductor Manufacturing Corporation (TSMC) is whose customers include Qualcomm, Nivdia and Apple.

 

The spike in sales for electronic items during the Covid-19 pandemic created a huge demand for semiconductors. This is one of the factor.

 

2nd factors the relationship between the United States and China .

 

Gelsinger had stressed the need to “normalise” relationships with China. He added that building factories will take time.

 

Impact of semiconductors chip shortage:

 

Its takes long time to meet the demand of multiple sector because the demand received in short notice.

 

A report published in May-21 , as an estimate this issues be eliminate by 2022 due to length process of making semiconductors .

For understand the impact of it we can read the news which hare coming in market relatedto multiple industry like SUZUKI, Toyata, Ford etc.

Domestic and global customer have to cut their production schedule sdue to shortage of semiconductors

 

According to data from Society of Indian Automobile Manufacturers (SIAM), automobile wholesales in India declined 11 percent year-on-year in month of August.

Some of the news released by automotive OEM reading their production schedule cut of due to semiconductors shortage are mentioned below.

 

Maruti Suzuki, India’s largest carmaker, will see a 60 percent cut in production in September due to shortage in supply of semiconductors.

 

Mahindra and Mahindra M&M said it would cut output by 20-25 percent in September due to the semiconductor shortage. The automaker will observe seven “no production days” at its automotive plants during the month.

 

Maruti Suzuki Witnesses Decline In Car Sales Due To Shortage Of Semiconductor Chips

Semiconductor shortage | Moore’s law leaves carmakers trailing

Semiconductor Labour Shortage Casts Shadow Over Supply Chain

Maruti sees impact to production next month due to semiconductor shortage.m

 

omicron will extend chip shortage to 2022 although supply chain management has improved moody ref. Economics Times.

 

Semiconductor shortage to bring down India’s PV sales growth to 11-13% in FY22: CRISIL

 

 

Based on the news and the current scenario automotive sectors is facing the issue of semiconductor shortage and it may take some more time to eliminate this problem and making the smooth production in industry. It can solved speedily by the strong coordination of government and the manufactures so that they can increase their capacity and manufacturing plan to meet the demand of automotive sectors.

 

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