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Why is there a Chip Shortage?


The chip shortage has plagued the automotive industry since the beginning of the COVID-19 pandemic, and continues to affect the price and availability of new vehicles. The automotive chip shortage is largely due to worldwide restrictions due to the pandemic that required factories to either close or operate at half capacity. So, what is the chip shortage, and how does it continue to affect the automotive industry? Learn more with Ocean Honda of Weymouth! For more information, feel free to contact us anytime!

What is the Chip Shortage?

So, what is the chip shortage? The chip shortage is a result of worldwide restrictions put in place due to the pandemic. This caused factories making the chips to operate at half capacity, or even close down completely. As a result, the supply cannot equal the demand for the chips, resulting in their price increasing significantly. 

Due to the issues caused by the chip shortage, dealerships in Boston have been working tirelessly to fill their inventory, as new vehicles now come at a premium. Let’s take a look at some of the key events that led to the automotive chip shortage:

  • Restrictions were put in place to slow the spread of the pandemic, requiring many factories and other businesses related to the chips to either close or operate at half capacity.
  • Due to the lack of chips, and the sheer amount of products that use them, supply has been unable to reach demand, and the price of the chips has increased exponentially.
  • Many electronics and other devices we use daily are equipped with these chips, however, due to the large number of chips needed for vehicles to operate effectively, the automotive industry has been hit the hardest by the shortage.

Can You Still Purchase New Cars at Ocean Honda of Weymouth?

Yes! Our staff near Quincy has been working endlessly to ensure that you have a large selection of vehicles to choose from. However, due to the automotive chip shortage, now is the best time to trade-in your vehicle, as dealerships such as Ocean Honda of Weymouth are looking to fill their inventory. So, if you have a vehicle to trade-in, be sure to use our value your trade tool to know how much your vehicle is worth.

Visit Ocean Honda of Weymouth for Your Next Vehicle!

Now that we’ve answered the question, “Why is there a chip shortage,”, you know that we are still filling our inventory, and have the perfect vehicle for you! So, come check out our new vehicle inventory, and meet with our finance center to start the buying process! Be sure to take advantage of our new vehicle specials to save big near Norwood!


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