Semiconductor Shortage: The Facts

April 29th, 2021

As you may have seen on the news, or heard through the grapevine, a shortage of semiconductor processing chips is impacting the automotive industry worldwide. This shortage is causing delays across the industry, with several leading manufacturers pausing production temporarily until the supply of semiconductors can meet production demands.

Here is a rundown of all you need to know, and importantly how this may affect you and your new van order.

What is a semiconductor?

Whether you are looking for a long-term lease on a small van, a pick-up, or a chassis cab, semiconductors are a vital component to many aspects of commercial vehicles.

While semiconductors are used in a variety of technology, such as in smartphones and laptops, they also play a huge part in the workings of a vehicle; for example:

• Operating Parking Sensors
• Managing Steering
• Managing Automatic Windows
• Managing Engine Performance
• Operating Entertainment Systems

Why is there a shortage?

There are several reasons why we are now suffering a semiconductor shortage, and why this has had such an impact on the automotive industry as a whole.

 A large part of the issue has been increased demand from the consumer electronics industry, which has seen a surge in need for smartphones and personal computers coinciding with the height of the Covid-19 pandemic. Semiconductor manufacturers have directed more of their supply towards this larger section of the market, leading to a shortage for vehicle manufacturers.

Further delays to the production of semiconductors have been caused by a fire at Renesas Electronic Corps in Japan, who produce a huge chunk of the world’s semiconductors.

How has this impacted vehicle manufacturers?

This global semiconductor processing chip shortage has had a huge impact on the automotive industry, causing several leading manufacturers to temporarily close production lines. While some are attempting to prioritise the production of vehicles in high demand, the lack of supply of these essential components is causing unprecedented delays.

Delay in projected factory production times has a knock-on effect, meaning delays in shipping, delays to the dealer, and in turn delays to the customer.  

Manufacturers who have spoken out about the delays they are experiencing due to the shortage include, but are not limited to; Ford, Renault, Vauxhall, Volkswagen, and Nissan.

If you would like to learn more about the semiconductor shortage, here are a selection of articles to keep you informed:

• Semiconductor crisis: JLR halts two plants, VW Group warns worst is to come
• Cisco boss: Semiconductor shortage ‘is a big problem’
• Ford details new production cuts due to global chip shortage

What this means for your vehicle order

If you’re placing an order for a new van deal, certain brands will have limited stock or delayed stock in production.

Suppliers and brokers, such as ourselves, will be buying up as much stock as possible to ensure continued smooth running of operations, and to mitigate any possible delays to the customer.

At Global Vans, we benefit from long-established relationships with major manufacturers, which has allowed us to search the country for available stock, and kept us up to date with the most current information on estimated factory lead times.

If you have any further questions regarding the global semiconductor shortage and how this may affect your new vehicle order, please call 0117 962 5314 to speak to one of our van specialists.