Istanbul Gelisim University IISBF SosyoCom: Monthly Events and News Bulletin (Issue: 22, October 2022)

CHIP MAKERS SEIZE POWER New teams formed at General Motors, Ford, and Volkswagen are negotiating the new process directly with chipmakers, and many automakers are accepting longer order commitments and higher inventories. General Motors has announced that it will work collaboratively with chip designers to design the components. Considering these situations, a radical change is expected in the automotive industry. Before the chip crisis began, control was almost entirely in the hands of automakers. With the onset of the crisis, it was a complete "U-turn" for automakers. Automakers have realized the necessity of establishing closer partnerships with chip manufacturers in this process. In this process, the automotive industry experienced a crisis in which 13 million vehicles were withdrawn from production as of the beginning of 2021. But a more costly change awaits the automotive industry. The CEO of TSMC, the world's largest chip manufacturer, C.C. Wei stated that auto industry executives did not call them until the chip issue was at a dead end. Finally, Wei also stated that this habit has started to break in the last two years. Ford announced that it will work with GlobalFoundries as it wants to secure its chip supply. Mike Hogan of GlobalFoundries stated that such agreements will not hinder their relations with other automakers.