The global semiconductor shortage will have far-reaching and long-lasting effects that are likely to have a greater impact on the automotive industry than the COVID pandemic, according to pioneering software provider VNC Automotive.
Perfectly placed to see the issue first hand, VNC Automotive has established itself as a leader in the vehicle connectivity space, working with clients on unique software solutions. The company has recently launched its first hardware product, Cobalt Cube™, to deliver advanced systems integration for police and emergency services vehicles.
Tom Blackie, Founder and CEO, VNC Automotive, said, “In conversations with clients and suppliers, it’s become clear that the effects of the semiconductor shortage will long outlast the pandemic, and will potentially have a far more serious impact on sales and future development.”
“Some of our suppliers are seeing prices for chips that are more than 30 times higher than before, and at that level, their use is no longer sustainable.”
“We’re even seeing vehicle buyers and fleet operators having to consider purchasing models that aren’t on their preferred lists because that’s all that’s available. At a time when the industry is asking people to consider making the switch to EVs, supply restrictions are leaving them frustrated.”
