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

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