As the end of the year nears, the total losses due to the semiconductor shortage are coming into focus.
Dramatically better than 2021, the chip shortage in 2022 represents a big improvement, partially offset by the lower expectations for demand this year. An anticipated soft market next year will also provide a lower starting point for the production outlook. Fortunately, the waning demand for advanced chips following the Covid-19 shutdowns has eased the need for semiconductors in many markets outside of automotive. Moving some of the production capacity to automotive chips could ease the tight supply and might shorten the production bottlenecks, possibly by the middle or late in the new year.
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