The semiconductor chip shortage has been plaguing the auto industry since 2020. Whether you are a shipper or hauler, you’ve likely felt the impact of this shortage in the past few years. The semiconductor chip shortage has caused price hikes and major supply-chain disruptions, specifically for the motor vehicle industry.
If you’re an auto hauler, your truck loads might have been lighter these last two years. For shippers, you may have been struggling to push pre-owned inventory because there weren’t new vehicles coming to your lot. From Ford being forced to cease production of F-150 trucks and Mustangs to GM parking completed vehicles in empty parking lots because they were missing semiconductor chips, the impact of this chip shortage has been widespread. It’s been a tough two years for everyone in the automotive sphere, but things are about to change.
The United States has passed the $280 billion CHIPS and Science Act. This bill invests billions into further innovating science and technology while subsidizing semiconductor manufacturing within the United States. The outcome of this bill? Cheaper domestically made vehicles.
With roughly $52 billion of this act going directly to microchip manufacturers, United States manufacturers are incentivized to make more semiconductor fabrication plants to increase chip production. This will pose America to be in a competitive place in the automotive market, and less reliant on outsourcing semiconductor chips.
The goal of the CHIPS and Science Act is to improve the current supply chain while lowering the prices of semiconductor chips. This will allow for more completed vehicles to make their way to consumers at a more reasonable cost. This is a turbulent time, and getting new plants set up and ready to produce semiconductor chips could take a number of years. However, this is undeniably a move in the right direction and the automotive industry should start looking forward to better times ahead!
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