According to ABI Research, the commercial transportation industry will likely face significant semiconductor shortages until at least year-end 2021. Others expect it will last longer. TSMC, for example, expects strong demand and potential shortages going into 2022 and Intel anticipates an industry squeeze for up to two years. Connectivity, security and integration are key to commercial transport and approximately 17 compute modules are required per heavy-duty vehicle. Semiconductor delays are having a major impact on virtually all of them, from safety systems to engine control and telematics.
According to ABI, Mack Trucks suspended some of its production periodically during the last month, Daimler included a warning in its recent earnings report, and Volvo Trucks warned of future disruptions to their production. In addition, telematics providers have to figure out how to address an estimated 650,000 devices remaining on 3G as of last quarter.
These findings are from ABI Research’s Supply Chain Management and Logistics quarterly market update report. This report is part of the company’s Supply Chain Management & Logistics research service, which includes research, data, and ABI Insights.
Original Release: PR Newswire
