Software development and the use of computers in today's cars have contributed to the rise in car prices over the last few years. Leo says that up to 40% of a price of a car can be attributed to the development of car computers and software that operates them. Add to that, Leo says that the worldwide chip shortage, and not only are cars more expensive, but car manufacturers are making fewer of them.
With the ongoing chip shortage facing the US, the president is meeting with silicon valley and other technology executives to see what can be done to improve the availability of computer chips. Leo says that COVID is only part of the problem, as an extremely high demand based on computers being put in just about everything is causing the ongoing shortage. The demand is exponential, and everyone was caught off guard. So the shortage will last at least a couple of years.
An ongoing chip shortage is causing many industries to fall behind in manufacturing. From cars to computers. The latest is router manufacturers, which are over a year delayed. What is the problem? It's multi-faceted. Covid is part of it. High Demand is another. There's a shortage of silicon right now. But it's also that container ship that was stuck in the Suez. But it's also an exclusive deal that Apple has made with some chip manufacturers which bought up all their stock. And even then, Mac and iPad production has been delayed. Additionally, there have been fires at several factories.