Auto industry needs 10% more production capacity for chips, VW exec says. the worldwide semiconductor shortage might not entirely get away next year and will take until 2023 to be resolved. executives said at the IAA Munich auto show.

BMW CEO Oliver Zipse said he expects supply chains to stay tight well into 2022. “I expect that the overall tightness of the availability chains will continue within the next six to 12 months,” he said.

Zipse said he saw no issues within the long-term, adding that the automotive industry was a beautiful client for chipmakers.

Volkswagen Group CEO Herbert Diess said shortages will continue for subsequent months or maybe years because semiconductors are in high demand.

“The internet of things is growing and therefore the capacity ramp-up will take time. it’ll be probably a bottleneck for subsequent months and years to return ,” he said.

VW purchasing chief Murat Aksel said semiconductor supply remains very volatile and tight within the third quarter. “We hope for a gradual recovery by the top of the year,” he said..

The auto industry worldwide would wish roughly 10 percent more production capacity for chips, Aksel said.

Renault CEO Luca de Meo said things regarding the shortage was tougher than expected during the present quarter. He said subsequent quarter should bring some improvement despite a poor visibility. Renault was sticking to its previous forecast for a move production of 200,000 cars in 2021 thanks to the shortage, de Meo said.

Automakers, forced by the COVID-19 pandemic to pack up plants last year, face stiff competition from the sprawling consumer industry for chip deliveries, which are upended by a series of supply chain disruptions.

Cars became increasingly hooked in to chips — for everything from computer management of engines for better fuel economy to advanced driver assistance features like emergency braking.

Daimler recently cut its annual sales forecast for its car division, projecting deliveries are going to be roughly in line with 2020, instead of up significantly.

Daimler’s Mercedes-Benz brand has been hit this quarter by factory shutdowns in Malaysia, which in recent years emerged as a serious center for chip testing and packaging.


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