Why Can’t Automakers Use Newer Chips That Are in Stock?
Hannah DeWitt
· 4 min read
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It's not easy getting a new car these days. A global semiconductor chip shortage may affect car manufacturers until at least 2023. This has some people wondering, why can't car manufacturers simply start using some of the newer chips that are actually in stock?
Even the chip manufacturers themselves are requesting that car manufacturers update their technology and make the switch to chips that are easier to produce. Despite the strain the chip shortage has put on the car market, auto manufacturers may have some good reasons for not transitioning, according to
Jalopnik
. 
Why don't automakers just transition to new chips?
Unfortunately, switching over to newer semiconductor chips isn't that simple for car manufacturers. For them, it's in part a question of safety as well as convenience.
Car manufacturers need to make sure that the technology they use is completely reliable and won’t cause life-threatening glitches in
automated safety features
. What's more, these same manufacturers are aware that consumers expect their products to last for many years. Since the newer chips were developed more recently, companies can’t guarantee years of reliability without testing it for longer periods.
As Thomas Coughlin, Fellow at the Institute for Electronic and Electrical Engineers, explained to Jalopnik, "Parts for automobiles, including some chips, are often built on older, proven technology, rather than the latest available technology."
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Chip manufacturers want to use the new chips
Of course, chip manufacturers have their own opinion on the matter. Many of them see the current chips as old tech, so they think moving to a new setup is the most logical option.
Whether automakers move forward with new tech or build up a supply of old chips, it’ll still be extremely expensive. To chip manufacturers, sticking with an old platform is a lost opportunity.
Part of the problem is the limited applicability of older chips. So many devices now rely on newer technology to power smartphones and computers that cars are now an outlier in terms of their reliance on older technology.
The older chips are also not nearly as economical to produce. Chip manufacturers much prefer to build the newer chips, which are smaller and can be produced in larger numbers at a lower cost.
New chips probably won't help the car shortage anytime soon
MORE: Ford Sales Are Down 33% Amid Ongoing Chip Shortage
At the moment, things seem to be at a standoff, as neither side has really acknowledged the challenges facing the other.
Even if car manufacturers do move toward newer chips, they still need to do a lot of testing to make sure that they’re producing safe and reliable vehicles. Automakers will need more time and facilities to conduct testing. Nabbing a lab to work in these days isn't easy, and they may struggle to even book testing sites.
For all of these reasons, it doesn't seem likely that we'll be seeing an end to the chip shortage anytime soon. Car supply will likely still be slim, and prices may well continue to rise. None of this is good news for the consumer.
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