Shortage of IHS Markit: Automotive chips Q3 will ease Q1 and return to normal in 2022

Market research firm IHS Markit expects the shortage of automotive chips that began at the end of last year to ease slightly from the third quarter of this year.

Due to the shortage of chips, a number of automakers around the world suspended car production in the first half of the year. IHS Markit said the trend would continue in the third quarter, although it would not be as serious as it was in the first and second quarters. On the one hand, this is because automobile manufacturers have flexibly formulated production plans in response to chip shortages; on the other hand, semiconductor manufacturers that stopped production in the first half of the year due to power outages, natural disasters and other reasons will also resume production in the second half of the year, thereby alleviating the chip shortage.

Renesas reportedly reopened the factory closed because of the fire, and factory shipments are expected to return to normal in July. The factory at NXP, which was shut down by a blizzard and severe cold, resumed production in April. Taiwan's fabs had previously been challenged by water shortages and power outages, but production returned to normal as rainfall returned to normal levels in June.

IHS Markit further predicts that the supply of automotive chips will fully return to normal in the first quarter of 2022.