Why a silicon chip shortage has left carmakers in the slow lane | John Naughton

A global dearth of these vital components, and a reliance on just-in-time manufacturing, has put the motor industry in a tricky spot

Here's a tale of two industries - cars and computers. In February, major car manufacturers such as Nissan and Honda began to warn shareholders that revenues were likely to fall significantly below expectations. And the reason wasn't Covid-19 - well, not directly anyway: the pandemic had already significantly depressed sales in 2020. No, the problem was that manufacturers were now unable to make some cars because they couldn't get the silicon chips (processors and other semiconductor components) needed to get the vehicles rolling off production lines. As a result, some factories were temporarily closing or being put on short time.

Meanwhile, in the same month, the computer industry was looking at a record year. Laptop sales were up 90% year on year. Tablet sales had recovered after a long slump. Even desktop computers and printers, for heaven's sake, were flying off shelves and into delivery vans. So how did it happen that one industry struggled while another boomed?