The automotive market is once again on the brink of disruption: manufacturers are facing the threat of a microchip shortage, which is already impacting the price of new cars. In recent months, alarming signals have come not only from analysts, but also from the automakers themselves. Ford, one of the largest players, has openly warned of a potential new wave of chip shortages, which could lead to another price surge and reduced availability of modern vehicles for buyers.
The situation worsened due to a sharp conflict between China and the Netherlands over Nexperia, a semiconductor manufacturing company. Nexperia’s Chinese subsidiary has decided to distance itself from the European parent company, threatening the stability of component supplies to European car plants. As a result, the supply chain has become vulnerable, and production lines are now at risk of shutdown.
Geopolitics and the market
Geopolitical interference in the technology sector has become a key factor capable of shifting the balance of power in the market. European car manufacturers, already under pressure from rising raw material and energy prices, are now forced to seek alternative sources of microchips. However, quickly overhauling logistics is impossible, and demand for chips for safety systems and autopilot features continues to grow.
At the same time, the world’s leading memory manufacturers — Samsung, SK Hynix, and Micron — are reallocating their capacities to focus on chips for artificial intelligence data centers. This is reducing the supply available to the automotive industry, where modern vehicles increasingly need more memory to operate complex electronic systems. According to forecasts, by 2026 the volume of memory in cars was expected to triple, but now these plans are in doubt.
Market response
Against this backdrop of uncertainty, dealers are increasingly turning to the used car market. New cars are becoming less accessible due to constant price increases and possible supply disruptions. In countries where state support for new car purchases has ended, the situation is worsening: buyers are forced to seek alternatives, and demand for the secondary market is rising.
Experts note that there is already a surge in demand for memory chips among automakers. Companies are trying to build up reserves, fearing a repeat of 2020, when the pandemic led to factory shutdowns and a sharp spike in component prices. As a result, even minor supply disruptions can cause production delays and push prices to new records.
Technology and consumers
Modern vehicles are increasingly dependent on complex electronic systems, including driver assistance features and autonomous control elements. Without stable microchip supplies, the development of these technologies is under threat. The shift of memory manufacturers to cater to IT giants like Amazon, Google, and Microsoft only worsens the shortage in the automotive components market.
Paradoxically, it is the growing technological sophistication of cars that makes them less affordable for the average consumer. The increased memory capacity and number of electronic modules drive up production costs, which means higher final prices. As a result, new cars are turning into luxury items, while the used car market is experiencing a real boom.
In the coming months, the situation could change in any direction. Everything depends on whether supplies can be stabilized and a compromise found between chip manufacturers and automakers. For now, buyers have to cope with rising prices and limited choices, while dealers are forced to adapt their business to new realities.
Ford is one of the oldest and largest car manufacturers in the world, established in the United States at the beginning of the 20th century. The company is renowned for its innovations in mass production and the introduction of new technologies in automotive manufacturing. In recent years, Ford has actively invested in the development of electric vehicles and autonomous driving systems, making it especially dependent on stable supplies of electronic components. Any disruptions in this area have a direct impact on the brand’s strategy and financial performance.
