Hopefully, these efforts will shorten the wait until normal supply resumes.
Samsung isn't a name typically associated with the auto industry, although the South Korean tech giant did unveil a concept car developed in collaboration with Renault back in 2019. But as one of the world's leading memory chip makers, it has a certain level of expertise it can apply to logic chips, like those that most of the world is in short supply of at the moment. While some, like Toyota, have a stockpile of the hot commodity, others like Chevrolet have had to make some tough decisions. Production of the Camaro has stopped, and even Mercedes has had to stop building the E-Class so that the new EQS can be produced. But fortunately, Reuters reports that Samsung is helping resolve the issue.
According to the report, Samsung Electronics is raising its planned investment in non-memory chips to around $151 billion through 2030. The South Korean government is also looking to help and has announced bigger tax breaks as well as around $883 million in loans for the local chip industry. Samsung's contribution to increasing investment in the sector, along with that of #2 memory chip maker SK Hynix, represents a big shift in where tech companies are going to spend their resources and expertise over the next decade. The semiconductor shortage that we're currently seeing is a big wake-up call, and it could actually help both the auto industry and these tech giants.
Samsung is investing roughly $18 billion dollars more than it said it would back in 2019, and with this greater investment, not only will supply increase, but the chips themselves could get more advanced, cheaper to produce, and more reliable by the end of 2030. Furthermore, even with these purported strides being made, the increased technology in our cars as we gravitate towards EVs and driverless tech will mean that we'll need more of these chips than ever. Hopefully, this supply issue is well under control before soon - BMW's CEO says that we should be back to normal within two years.