Semiconductor chips are crucial components for electric vehicles (EVs) and other automobiles. Although, according to the CEO of BMW, chip shortage is expected to remain a problem for the auto industry in 2023, the robust demand for electric vehicles, hybrids to traditional combustion engine cars is expected to drive the auto chip market growth significantly.
The global chip shortage forced many auto manufacturers to cut their production, hampering their overall supply. However, growing corporate investment and government assistance to scale up production could help alleviate the shortage in the coming months. Furthermore, the demand for auto chips should continue to climb as vehicles become increasingly technology-reliant. The global semiconductor chip industry is expected to reach about $600 billion in 2022.
