Electronics

Many OEMs or dealers raised prices, semiconductor supply is tight: McKinsey

According to the latest report, Bill Wiseman, a senior partner at the well-known consulting firm McKinsey, recently revealed that in the face of chip shortages, the company has formed a dedicated team to procure specific chips that are urgently needed for customers around the world or identify them that can be used for replacement’s model.

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Wiseman said that many OEMs or dealers have raised their prices during the period, and customers have no choice but to accept. Vehicle-standard chips are the hardest hit area for shortages.

Many U.S. OEMs choose to temporarily reduce some vehicle functions to avoid the production line shutdown caused by the shortage of related chips. After the supply of chips is restored, dealers will add them to customer vehicles.

There are also manufacturers who choose to reconstruct the software code and reduce chip requirements through system optimization.

The person in charge of Altia, a company that develops interface software for automobiles, revealed that many manufacturers use software optimization to realize the replacement of old part number products while keeping the GUI unchanged.

The chip shortage has also brought a bright future for dealers. Smith & Associates, an electronic component dealer, revealed that its staff wages have reached an all-time high.

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