GM To Start Producing Its Own Microchips by 2025

By now you’ve probably heard about the global microchip shortage that has been plaguing the auto industry for the last couple of years, drastically affecting production and availability for every automaker. So rather than be faced with this problem again in the future, GM announced that it will be producing its own microchips by 2025 to prevent any further production delays.

While speaking with the Associated Press, GM CEO Mary Barra says that they intend on creating three different families of their own microchips rather than being dependent on parts companies to meet their demand. The microchips will also be multifunctional, reducing the number of chips required for each vehicle. “We’re also working with a select group of strategic companies to source these for the volumes,” says Barra. “We’ll have much better control and a stable supply.”

Barra, much like many other heads of major automakers, believes that the microchip shortage will continue into 2023 with possible setbacks by potential COVID-19 outbreaks.

On top of this announcement, GM also intends on dethroning Tesla as the top EV producer in the market by 2025. Of course, their EV inventory will need to expand as they have sold only 25,000 EVs in the US in 2021, while Tesla sold a monstrous 352,000 EVs in the same year. However, it is not necessarily an impossible goal as GM intends on launching 30 new EV models to their inventory by 2025 like the Chevy Silverado EV, Chevy Equinox EV, and the Chevy Blazer EV.