Additionally, we note that the continued increase in the price of chips will see some high volume automakers opt to stop production over paying more for chips and further squeezing profit margins. Indeed, Taiwan Semiconductor Manufacturing Company (TSMC), the largest producer of chips globally, announced an increase of between 10%-20% in 2021 chip prices and is planning on increasing chip prices by up to 30% for 2022. This means that one of the most expensive components of a car will become much more expensive and drive up production costs.