Chip Shortage Worsens as Bosch Says Current Supply Chain Is Inept
I’ve said it before and I’ll say it again. Walk into a Bosch plant and you’d be able to slap together a whole car using nothing but the dumpster out back. Put another way, the German parts manufacturer makes just about everything cars. I routinely find parts on my project car that are made by Bosch, and that car is old enough to vote. However, even the mighty Bosch has been felled by the chip shortage. Now, the brand says that production methods and supply chains are inadequate for the modern world.
Automaking has changed drastically
According to a CNBC report, Bosch says that the supply chains failures causing the chip shortage mean that those supply chains are no longer useful to us. Harald Kroeger, Bosch board manager, says automakers need to find ways to improve the supply chain. However, many automakers are simply trying to keep up with demand. Frankly, it’s hard out there right now.
Ford alone has had to delay and cut back production of the Bronco, as well as other models, in the face of the great chip shortage of 2021. Additionally, Kroeger went on to say that automakers have quietly managed supply issues for some time, but it’s now time for an overhaul. In light of that, Bosch, as well as other semiconductor producers have stepped up.
When will the chip shortage stop?
So, that immediately brings two questions to mind. First, how is Bosch going to help end the chip shortage, and second, when will the chip shortage stop? Thankfully, Bosch already has answers before even asking the question. The German company already went out and build a massive $1 billion Euro semiconductor assembly plant in Dresden, Germany. Moreover, semiconductor giants like Intel and TSMC are also building new plants to meet demand.
Unfortunately, that second question is harder to answer. Rather, the answer may be harder to hear. Time will stop the chip shortage. Frankly, it’s our greatest ally here. We have to wait not only for these supply chains to catch up, but for these new factories to get off the ground. If you want specific dates, Bosch says the chip shortage could extend into 2022.
EVs may change the way we build cars
Frankly, for all the good EVs do for our environment, they’re not helping the chip shortage. They use way more complex computers than traditional ICE cars. On average, we’re talking double the number of semiconductors, if not more. The way we build cars is changing as a result of electric vehicles and the gradual electrification of our supply chains. Thankfully, Bosch saw things coming and is doing all they can to end the chip shortage.