Semiconductor Shortage: Toyota Goes Back To Basics With Car Keys

A global chip shortage has caused a severe delay in car production and shipments
car key
car key

Amid global semiconductor shortage, leading carmaker Toyota Motor Corp is likely to replace one of the two electronic "smart" keys it delivers in Japan with a mechanical one.

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

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

The global semiconductor shortage since 2021 has halted assembly lines around the world and slowed down the production of smartphones, home appliances among other products. 

Automakers’ reliance on electronic chips has significantly increased as vehicles, especially the top-end variants, become more feature-rich. 

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.

Leading carmakers are grappling with a huge backlog of around 6.5 lakh units, with chip shortage continuing to crimp their manufacturing activities and leading to long waiting period for customers.

The country's largest carmaker Maruti Suzuki India alone has a backlog of around 3.4 lakh units while Hyundai and Mahindra & Mahindra have a combined pending order list of about 3 lakh units.

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