As the global semiconductor shortage continues to wreak havoc, some of the United States’ biggest automakers are taking big hits to their bottom lines when their revenues should be skyrocketing due to solid demand for new cars. For instance, Ford, which is the country’s second-largest car manufacturer by volume, saw a 50% reduction in profit in the last quarter of 2021. The company recently notified Mach-E pre-orders about a six-week delay in delivery times, blaming the delay on the global semiconductor shortages. According to Tesla CEO Elon Musk, the company has been trying to overcome the global chip shortage by rewriting the software of its EVs to be compatible with alternative computer chips. The semiconductor crisis has hit a diverse array of industries across the world. As unprecedented amounts of work, shopping, life, and socializing went digital with the recent pandemic driving everyone inside, the demand for electronics soared high, and the semiconductors contained in these electronics also went through the roof. The overnight increase in demand, brought about by a concoction of different factors such as the trade war between the US and China, has caused a major headache for a huge swath of economic sectors as more and more products become “smart” and therefore reliant on the overloaded computer chip industry. One of the hardest-hit sectors was the auto industry at a time when second-hand automobiles have become more expensive since new cars just aren’t available. Given that a modern car can only use over 3,000 chips in its production, the automobile industry, therefore makes just a fraction of overall semiconductor demand. As a consequence, computer chip makers are prioritizing big fish such as computer graphics cards, smartphones, video games, gaming consoles, and other consumer electronic gadgets, leaving the automotive industry with an limited supply of these components. Well, there’s an explanation for that, as revealed by Tesla in its Q2 2021 Earnings Update Letter. According to Tesla boss Elon Musk, the company has been trying to overcome the global chip shortage by rewriting the software of its EVs to be compatible with alternative computer chips. Considering that Tesla cars are among the most microchip-hungry, the automaker designed its own computer chip to accommodate the needs of its autonomous software. As per Musk, the development of new components helped Tesla to circumvent the severely overloaded semi-conductors. “Our team has demonstrated an unparalleled ability to react quickly and mitigate disruptions to manufacturing caused by semiconductor shortages. Our electrical and firmware engineering teams remain hard at work designing, developing, and validating 19 new variants of controllers in response to ongoing semiconductor shortages,” Tesla wrote in its Q2 2021 Earnings Update Letter. In the report, the company admitted that it could avoid the challenges of the global shortage by shifting to microcontrollers instead of semiconductors. The company has designed, developed, and validated 19 new controllers, along with firmware for chips, which has steered the Silicon Valley-based EV maker, far away from the computer chip supply issues. In fact, Tesla temporarily shut down its Fremont factory in Northern California for three days. Tesla boss Elon Musk noted that the brief hold-up at the facility was caused by “parts shortages” but never gave specific details on which components were to blame for the stoppage. Tesla has designed, developed, and validated 19 new controllers, which has steered the company far away from the semiconductor shortage that has cut production across several car manufacturers. In fact, the American automaker Tesla has been able to continue growing, with only a few delivery delays for some models. Despite the global shortage of semiconductors and other supply chain challenges, Tesla said its highly talented and competent team of engineers and software experts could help keep production lines running to full capacity. “While we saw ongoing semiconductor supply challenges in Q2, we were able to further grow our production,” the automaker noted in its report. Regardless of this runaway success during the supply chain issues, CEO Musk indicated that his car company’s future growth will stay reliant on a long-lasting solution to the semiconductor shortages. In addition to Software rewrites, the company still depends on a wide variety of computer chips to produce its electric cars. According to Musk, the global semiconductor shortage situation remains quite serious...
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