In 2022 automobile companies were facing a shortage of computers chips used in cars to run various parts of the car, and therefore supply of cars had decreased since a necessary part(s) was not available.

(a) If an auto company like General Motors (GM) decided to buy a chip manufacturing company to ensure that it did not face a chip shortage in the future, would such a purchase lead to more concentration in either the auto industry or the chip-manufacturing industry? Please give an explanation.

(b) Would such a merger be considered a horizontal merger or a vertical merger? Please explain.