[vc_row][vc_column][vc_column_text]As you may have seen on the news, or heard through the grapevine, a shortage of semiconductor processing chips is impacting the automotive industry worldwide. This shortage is causing delays across the industry, with several leading manufacturers pausing production temporarily until the supply of semiconductors can meet production demands.

Here is a rundown of all you need to know, and importantly how this may affect you and your new van order.

What is a semiconductor?
Whether you are looking for a long-term lease on a small van, a pick-up, or a chassis cab, semiconductors are a vital component to many aspects of commercial vehicles.

While semiconductors are used in a variety of technology, such as in smartphones and laptops, they also play a huge part in the workings of a vehicle; for example:

Operating Parking Sensors
Managing Steering
Managing Automatic Windows
Managing Engine Performance
Operating Entertainment Systems
Why is there a shortage?
There are several reasons why we are now suffering a semiconductor shortage, and why this has had such an impact on the automotive industry as a whole.

A large part of the issue has been increased demand from the consumer electronics industry, which has seen a surge in need for smartphones and personal computers coinciding with the height of the Covid-19 pandemic. Semiconductor manufacturers have directed more of their supply towards this larger section of the market, leading to a shortage for vehicle manufacturers.

Further delays to the production of semiconductors have been caused by a fire at Renesas Electronic Corps in Japan, who produce a huge chunk of the world’s semiconductors.

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