--- title: Chip Shortage and Automobile Industry? What is going on? description: Blog post that describes the connection between VLSI and Automobile Industry image: https://vedictechschool.com/hubfs/car.webp --- ![vedic-new-logo](https://vedictechschool.com/hubfs/vedic-new-logo.png) [Call Us](tel:900019191) [Follow us on Facebook](https://www.facebook.com/profile.php?id=100063825559694) [Follow us on Instagram](https://www.instagram.com/vedictechschool/) [Follow us on LinkedIn](https://www.linkedin.com/company/vedic-school-of-technologies/) [Chat with us on WhatsApp](https://wa.me/+919000191991) [Email us](mailto:info@vedictechschool.com) [Check us on Maps](https://g.page/Vedicvlsi?share) - [Home](https://vedictechschool.com) - [Our Courses](https://vedictechschool.com/en-in/curriculum-for-all-courses) - [Training Calendar](https://vedictechschool.com/en-in/check-our-training-calendar-and-register-your-seat-before-they-fill-out) - [Blog](https://vedictechschool.com/vedic-bytes) - [Home](https://vedictechschool.com) - [Our Courses](https://vedictechschool.com/en-in/curriculum-for-all-courses) - [Training Calendar](https://vedictechschool.com/en-in/check-our-training-calendar-and-register-your-seat-before-they-fill-out) - [Blog](https://vedictechschool.com/vedic-bytes) [VLSI](https://vedictechschool.com/vedic-bytes/tag/vlsi) [Automobile](https://vedictechschool.com/vedic-bytes/tag/automobile) # Chip Shortage and Automobile Industry? What is going on? [Vedic Facutly](https://vedictechschool.com/vedic-bytes/author/vedic-facutly) Nov 30, 2022 1:24:24 AM ![](https://vedictechschool.com/hubfs/car.webp) Are you expecting your car delivery? It might get delayed and you know VLSI Chips can be the main reason? Want to know, read on ! ![car](https://vedictechschool.com/hs-fs/hubfs/car.webp?width=642&height=361&name=car.webp) Nowadays VLSI is everywhere. From the small remote car toy, and Bluetooth earphones to missiles VLSI presence is predominant. The automobile industry is not an exception to this. Compared to 20-30 years back, nowadays cars, and trucks are more capable, smarter and safer also. Thanks to VLSI where most of these brains are taken care of by the chips in the car. Starting from remote ignition, and power/electronic steering to more smart features such as 360 degrees cameras, infotainment systems, analytics, and chips are delivering all these responsibilities in your car. So, in short, all smart capabilities of present-day cars are due to microchips and all car manufacturers have to design their own chips tendering their own requirements. COVID made things upside down. As there were lockdowns and people were constrained to only homes, auto-manufacture sales got a deep hit and demand reduced drastically. And these VLSI Chips take a good amount of cost for these manufacturers, so they cancelled all their future orders for subsequent years. But VLSI works in a different way. If you want a chip today, you need to think of that at least a year before as it involves a lot of complex frontend and backend stages. Worldwide we do have countable fabs that take care of the chips fabrication process.  Come back to the automobile story, as these companies cancelled their orders, these fabs replaced these orders with others and they kept themselves busy meanwhile. Now the pandemic effect reduced and normal business slowly resuming hence there is demand in the market as well and new models have also been unveiled. But when it comes to delivery, it involves the manufacturing of the car and the requirement of these chips.  Again going back to the VLSI Industry the way it works, for today's demand, you have to be thoughtful of yesterday itself. Now all manufacturers again placing orders but the fabs are busy delivering their previous orders. So no chips delivered to these car companies and hence delay of car deliveries. 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