04 Apr 2023 -

Germany: shortages ease but a long way to go, says ifo


Although German manufacturers are facing fewer material shortages, the supply situation is still far from ideal. According to an IFO survey, 41.6% of businesses reported issues in March, a decrease from 45.4% in February. Specifically, more than 60% of German companies in the sectors of machinery and equipment, electrical and electronics, and auto manufacturing reported difficulties obtaining raw materials and intermediate products.

“This easing will have a positive impact on industrial production in the months ahead,” Klaus Wohlrabe, head of surveys at ifo, told Reuters. The ifo Institute (Leibniz Institute for Economic Research at the University of Munich) is a research institution based in Munich.

According to the NYTimes, Germany is trying to protect future electronics supply chains by attracting more chip makers. However, the cost to attract semiconductor companies is expected to cost Berlin billions, and some wonder if it’s a good use of money.

Last year, Intel made history by selecting Magdeburg, Germany as the site of its first semiconductor factory in Europe and promising to invest 17 billion euros. The agreement was made with the stipulation that Berlin would provide additional subsidies of nearly €7 billion.

Wolfspeed, a North Carolina-based manufacturer of silicon carbide chips used for electric vehicles, recently declared that southwestern Germany was the perfect place for their €2.5 billion European factory. This agreement also included government subsidies of hundreds of millions of euros.

Infineon, Germany’s leading chip-maker, is planning to construct two plants at its manufacturing site in Dresden, costing €5 billion, with the expectation that the government will cover around one-fifth of the total.

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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