Auto sector urged to adapt as chips and AI become essential

Automotive manufacturers are now leaning heavily on semiconductor chips and artificial‑intelligence technologies, a shift that has prompted the national government to urge the sector to adapt quickly. Chips power essential vehicle functions such as engine management, safety sensors and infotainment. AI helps in design optimisation, predictive maintenance and emerging driver‑assist features. The government’s appeal aims to keep the industry in step with rapid tech adoption and to avoid supply‑chain bottlenecks. Industry leaders are expected to invest in new chip‑sourcing strategies and AI‑driven processes to stay competitive. Failure to adapt could lead to production delays and higher costs, especially as recent global chip shortages have highlighted the need for stronger local capabilities.