The chirping news in the automotive industry is not the latest comments of Tesla CEO Elon Musks or any new electric vehicle model. But now, the news is based on a significant semiconductor shortage that is harming automakers worldwide. The reason is Toyota, Ford, General Motors, and others cannot get the required particular electronic part. In this way, they are reducing the production of electronic vehicles such as the Ford F-150.
The shortage is not limited to electronic car equipment, but it also involves the lack of chips used in Sony Playstation 5 and Microsoft Xbox Series X consoles. On the other hand, people came out to purchase the graphics processors of Nvidia during the Pandemic. Moreover, the biggest mobile chipmaker in the world – “Qualcomm”- can also not get sufficient processors to fulfill the demand and needs of its handset users.
In this case, the thing of worry for Qualcomm is the upcoming CEO – Cristiano Amon, instead of lukewarm consumer reception to 5G. He will become the fourth CEO in the history of an organization. That was when he took control in June from Steve Mollenkopf.
After this, the pressure on Qualcomm as e leader in mobile chips will increase. Not only this, but it also fetches the company and expands it to a great extent into novel markets along 5G connectivity.
In the broadcasting interview qualcomm ceo amon nvidiaarmtibkencnet for CNET, Amon said, “Do you want to know the reason or asked me about the thing that keeps me awake at night, it is the only supply chain crisis. On the other hand, there is increased demand for tech products, and the supply chain is not truly ready to deal”.
Further, he stated, “And these deadly shortages will end in late 2021.”
In the last year of the corona pandemic, people prefer to stay at home and seize shopping. Consequently, it leads to factories closing and companies canceling the order.
In this way, the requirement began to increase more swiftly than before—particularly the devices required for work from home and online classes. Amon has demonstrated it as a “V-shaped recovery,” which means a giant drop-off in buying, which raises demand. But the parts makers could not meet the market to this extent. Automakers are backfired.
“With the passage of time and in this tech era, more devices are based on digital functionality. Like in the case of Cars, the demand for semi conductor has grown to the level where people are fighting over available capacity,” said Tech analysis Research analyst Bob O’Donnell.
Simultaneously, Huawei has also shown a decline in its android market graph. It also hurt the tech industry. In late summer, the Chinese company got a high rank in the phone market of the entire world. It was the first time in the past ten years that Apple and Samsung had not reached space. But it does not go long when US sanctions against Huawei harm the ability to sell mobiles, providing opportunities for android makers. It causes more harm to processors from the Qualcomm organization.