Home World News 'Like a fire': Chinese carmakers grappling with chip shortages | Automotive...

‘Like a fire’: Chinese carmakers grappling with chip shortages | Automotive industry news


Automotive manufacturers around the world have had to adjust assembly lines due to a shortage of chips caused by high demand for cars.

Auto industry executives are puzzled by a global shortage of semiconductors affecting production in China, after hopes the world’s largest auto market can spur a recovery. global recovery in the field.

Automakers around the world have had to adjust assembly lines due to shortages, caused by production delays that some semiconductor makers blamed for faster recovery than expected. ants from the pandemic coronavirus.

Volkswagen AG, China’s largest foreign carmaker that wants to sell more than 4 million cars in the country, said the impact of the car shortage remained unchanged in the second quarter of this year.

Stephan Woellenstein, the director of Volkswagen in China, told reporters on Sunday that it is difficult to gauge how much production Volkswagen could lose from week to week or even months due to a lack of chips.

“It’s really like firefighting … In some cases, we have switched to a different chip so we have changed suppliers,” he said, ahead of the Shanghai auto show that opens on Tuesday. Two.

Cut production

China, where more than 25 million vehicles were sold last year, has been a ray of hope for automakers, including Volkswagen and General Motors, after the global auto industry was hit. heavy by the pandemic.

Automakers including Nissan Motor, Ford Motor and Nio Inc said they had cut production due to a shortage of chip supplies. [File: Aly Song/Reuters]

However, China was also the site of news about a shortage of car chips first last year. Shortages worsened by the fire of Renesas Electronics’ chip factory in Japan in March.

Automotive groups account for about a tenth of the $ 429 billion in semiconductor market in 2019, according to consulting firm McKinsey, with NXP Semiconductor, Germany’s Infineon and Renesas being among the main suppliers for the sector. this area.

Automakers including Nissan Motor, Ford Motor and Nio Inc said they had cut production due to a shortage of chip supplies.

Li Shaohua, a senior official at the China Automobile Manufacturers Association, said a shortage in chip supplies caused car output to drop 5-8% in the first two months of this year, and hopes for a photo benefits will be reduced from the third quarter of this year.

As a result, the China Association of Automobile Dealers said it expects car inventories to continue to decline in China as the shortage of chips affects car production in general. The supply of some models may not meet the demand.



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