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Semiconductor Shortage: Toyota Goes Back to Basics with Car Keys

Amid global semiconductor shortage, Toyota is likely to replace one of the two electronic “smart” keys it delivers in Japan with a mechanical one. The company said in a statement:

“As the shortage of semiconductors continues, this is a provisional measure aimed at delivering cars to customers as quickly as possible. As for the second smart key, we plan to hand it over as soon as it is ready.”

The global chip shortage has caused a severe delay in car production and shipments. As per a Reuters report, Toyota said it would probably be unable to build the 9.7 million vehicles it had initially forecast for the current business year.

Related: The Semiconductor Chip Shortage

The global semiconductor shortage since 2021 has halted assembly lines worldwide and slowed down the production of smartphones, and home appliances among other products. Automakers’ reliance on electronic chips has significantly increased as vehicles, especially the top-end variants, become more feature-rich.

Global semiconductor shortage

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers, and cellphones to various other electronic items. The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more features such as Bluetooth connectivity and driver-assist, navigation, and hybrid-electric systems.

Related: Japan Could Lose 14% GDP & Millions of Jobs by Stalling on EVs

Leading carmakers around the globe are grappling with a huge backlog with chip shortages continuing to crimp their manufacturing activities and leading to a long waiting period for customers.

Source: Reuters

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