JP Morgan reports that tensions in the automotive chip supply chains, which began in 2020, will soon be eased.
Although the company believes the coronavirus pandemic caused the shortage of car chip chips, other factors played an important part. Microcircuits are also in high demand due to the shift towards electric vehicles and factory automation.
JP Morgan forecasts that the supply chain will significantly decline in the second half of 2022. Although the demand for consumer electronics is down, factories have been able to increase their production capacity. However, automotive product certification remains a significant constraint on supply and demand alignment.
It is anticipated that the demand and supply of automotive chips will balance by the end.
