Analog chips – poised to become the next big threat to automakers?

The capacity for analog chips is expected to grow, but it is unlikely to be sufficient to meet the increased demand for chips in cars; therefore, the supply may tighten again around the end of 2023.

The automotive semiconductor supply tightness will likely ease in 2022 and in the first half of 2023. However, there is a risk of pressure points building up again at the end of 2023 or early 2024. According to IHS Markit’s analysis, new concerns are emerging over the supply of analog chips. After microcontrollers (MCU) in 2021, analog chips are likely to become the main constraint for vehicle production for the next three years.