According to the news sources I've been reading[0], this is a management failure by auto companies rather than some kind of structural issue with the chip indus

According to the news sources I've been reading[0], this is a management failure by auto companies rather than some kind of structural issue with the chip industry. So it doesn't really make sense to me that automakers might build their own fab. They're the problem, not the fab. They're crying to the newspapers because it looks bad to admit they were cheap and will have to furlough workers. Politicians are playing along with the shortage angle, because when you save a worker's job they tend to vote for you. I predict the end result will be politicians spending taxpayer money to make filling these orders worth the fab's time. >Mr Duesmann described the problems as “a crisis upon a crisis”. Demand for cars slumped for much of last year because of the coronavirus pandemic, prompting auto suppliers to cut their orders for the computer chips that manage everything from a car’s brakes and steering to its electric windows and distance sensors. >But demand for cars jumped unexpectedly in the final three months of 2020, as buyers became more optimistic. Audi had its best quarter ever, largely because of a rebound in China. You say that development of the chips in cars is extremely complex, but I was under the impression car chips are generally outdated, semi-rugged processors that might have some additional safety features like lockstep cores. The control systems algorithms for the functions you describe aren't particularly complicated as far as I know. Auto manufacturers are infamous for cost cutting. I assume selling them chips is a low margin high volume business, in which case I would be glad to replace their orders with higher margin ones at the earliest opportunity. [0] https://on.ft.com/39V7w9h https://on.ft.com/39V7w9h (paywalled after 3 free accesses)