Bosch CEO: The trend of tight supply of automotive semiconductors may continue until 2022

Bosch, the world’s largest supplier of auto parts, recently pointed out that the tight supply of automotive semiconductors may continue until 2022.

In an interview with the Frankfurter Allgemeine Zeitung, CEO of the company Volkmar Denner said that the shortage of automotive chips cannot be resolved in the short term. “We will also face a difficult period of several months, and this situation may continue until 2022.”

Volkswagen Group (VOWG) said earlier this month that due to a continuing lack of much-needed automotive chips, the group is in a crisis mode, and the impact of the shortage is expected to intensify and affect its profit in the second quarter.

Since the end of last year, the auto industry has been struggling to solve the problem of chip supply shortages. The reasons include the suspension of work in Southeast Asia due to the new crown pneumonia epidemic-related epidemic blockade, and the large purchases of the Chinese technology giant Huawei, which is sanctioned by the United States. At the beginning of this year, under the impact of a snowstorm, the Texas plant was suspended, which further aggravated the shortage of automotive chips, and many auto factories announced production cuts one after another.

Consulting firm AlixPartners pointed out that the global shortage of semiconductor chips will cause automakers to lose US$110 billion in revenue this year, higher than the previous estimate of US$61 billion. In addition, the “core shortage” crisis will impact the production of 3.9 million vehicles. To avoid such risks, automakers urgently need to enhance the flexibility of their supply chains and develop diversified supply sources.

At the beginning of this month, Volkswagen Chief Executive Herbert Diess stated that Volkswagen is in crisis mode due to the continuing shortage of much-needed automotive chips. He also expects that the impact of chip shortages will intensify and hit second-quarter profits.

GM has previously stated that the reduction in auto production in North America will be extended to May this year. In addition to the three plants in the United States and Canada that have already reduced production, three plants in Mexico have also joined the ranks of discontinued production or adjusted the pace of production.

In addition, Ford Motor also announced that production at its North American plant will continue to be adjusted until June this year.

Sales of Honda Motor and Nissan Motor in Japan are also affected by the shortage. It is estimated that the total sales of the two companies in the first quarter (as of March) will decrease by 250,000 units.

The Links:   LQ12S56 TFD58W22MW

Leave a Reply

Your email address will not be published. Required fields are marked *