Semiconductor industry and market

In the chip shortage of around 2020-2021, why was automobile production heavily affected?

  1. ABecause cars use no semiconductors at all
  2. BBecause procurement of automotive chips could not keep up with sudden shifts in demand, and a car cannot be completed if even one part is missing
  3. CBecause car factories were converted into chip fabs
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Answer: B. Because procurement of automotive chips could not keep up with sudden shifts in demand, and a car cannot be completed if even one part is missing

Automakers temporarily cut orders as the pandemic spread, while demand for chips for PCs and the like surged with people at home, and the supply of automotive chips then could not keep up with recovering car demand. Because cars use many chips, a shortage of even one type halts production, and the importance of supply chains became widely recognized.

  • A. Cars use many semiconductors.
  • B. Correct. A shortage of even one part prevents completing a vehicle.
  • C. Car factories were not converted into chip fabs.
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More Semiconductor industry and market questions

  1. Which small computer, embedded in appliances, cars and other equipment to control them, integrates a CPU, memory and I/O circuits on one chip?
  2. What is it called when large cloud providers and the like design their own chips specialized for AI processing and other tasks for their data centers and have them made by foundries?
  3. Which law, enacted in the US in 2022, provides large subsidies and more for domestic semiconductor manufacturing and research and development?
  4. Which Japanese company, founded in 2022, aims to mass-produce 2 nm-generation leading-edge logic chips in Chitose, Hokkaido?
  5. Fabs place particular emphasis on keeping tool utilization high. Which is an appropriate reason?