18 Aug 2023 -

Chip shortage in Germany’s car industry to last years, says Audi

automotive audi

The global semiconductor shortage that has caused major disruptions to the German car industry is not expected to be resolved for several years, a senior Audi manager has said.

According to Reuters, Renate Vachenauer, head of procurement at Volkswagen-owned Audi, told the Augsburger Allgemeine newspaper that it would take “billions of dollars” and “years” to build new chip factories in Germany and bring them up to capacity.

In the meantime, Vachenauer said carmakers would need to take steps to reduce the number of different types of chips used in vehicles, from the current level of 8,000 to a more manageable number.

She also said that carmakers would need to stockpile chips on the open market to ensure a steady supply.

The chip shortage has hit the German car industry particularly hard, as the country is a major producer of premium vehicles that use a high number of semiconductors.

The shortage has caused production delays and shortages of some models, and has led to job losses in the industry.

The German government has responded to the crisis by offering billions of euros in subsidies to chipmakers who build factories in the country.

Intel and TSMC, two of the world’s largest chipmakers, have announced plans to build factories in Germany, but it will take several years for these factories to come online.

In the meantime, the German car industry is facing a difficult challenge in securing a steady supply of semiconductors. Vachenauer’s comments suggest that the industry is likely to be facing supply constraints for several years to come.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

Related News

10 Jul 2024 - General

Counterfeit GPUs on the Rise: A Growing Concern for the Electronics Industry

Read more

09 Jul 2024 - General

DRAM Prices Skyrocket Amidst AI Boom and Production Shifts: A Deep Dive into the Memory Market

Read more

08 Jul 2024 - General

US Government Invests in Semiconductor Workforce to Combat Looming Talent Crisis, But Challenges Remain

Read more

07 Jul 2024 - General

Semiconductor Manufacturing Equipment Sales Expected to Explode

Read more

05 Jul 2024 - General

US attracting ‘insane’ money into building chip manufacturing

Read more

04 Jul 2024 - General

Vietnam: caught in the crossfire of US-China tech rivalry

Read more