Can chip shortage lead to more job creation? Let’s find out..

With cars becoming more digital and the shift towards companies creating their own software to overcome the chip shortage, it’s good news for engineers and programmers. You wonder why? Because this means more job creation. The chip and battery shortage had caused factories to shut down, leading to massive layoffs.

Car companies are realizing that they need to take control and build their own computer systems to move ahead in the new world of electric vehicles. They are investing into building in-house capabilities that will help them get over the current shortages of batteries, chips and semiconductors, which is limiting their growth in the electric car market.

Auto makers have announced that they will be hiring more engineers and programmers to design their own chips and write their own software. The old school car makers resorted to the in-house capabilities of designing and final assembly of the car, and outsourcing the rest of its functions. This strategy was not successful during the Covid era of supply chain interruptions.

Not only are auto makers planning to use fewer specialized chips in coming models and more standardized semiconductors, to write its own software, but also design their own vehicle hardware.


If you are looking to change your focus and get into the electric car arena, this is the time. Not only are jobs being created by electric car manufacturers, but the traditional car makers have also announced an increase in production to meet the strong demand for cars.


Author: Ila Choudhary

January 14, 2022

Adapted from NY Times Article




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