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One of the key areas where the automotive industry has experienced significant disruption is in the supply of semiconductor chips . These chips are essential components in modern cars , used in everything from powertrain management to infotainment systems . The pandemic and other factors such as a fire at a semiconductor manufacturing plant in Japan have led to shortages of these chips , causing production delays and reduced output . However , the industry is working to address these challenges , with many automakers increasing their orders and investing in new chip manufacturing facilities to secure their supply .
Driving recovery
In addition to the chip shortage , the pandemic also led to a significant reduction in demand for new cars , as consumers faced economic
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