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regular-article-logo Saturday, 11 May 2024

Semiconductor crisis likely to stretch till 2023

Car makers face stiff competition from the sprawling consumer electronics industry for chip deliveries, hit by a series of supply chain disruptions due to the pandemic

Reuters Munich Published 07.09.21, 02:07 AM
Representational image.

Representational image. Shutterstock

Soaring demand for semiconductor chips means the auto industry could struggle to source enough of them throughout next year and into 2023, though the shortage should be less severe by then, Daimler AG’s CEO said on Sunday.

Car makers, forced by the Covid-19 pandemic to shut down plants last year, face stiff competition from the sprawling consumer electronics industry for chip deliveries, hit by a series of supply chain disruptions during the pandemic.

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Cars have become increasingly dependent on chips for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

“Several chip suppliers have been referring to structural problems with demand,” Ola Källenius told reporters during a roundtable event ahead of the Munich IAA car show.

“This could influence 2022 and (the situation) may be more relaxed in 2023.”

The IAA show is the first major motor industry event worldwide since the Covid-19 pandemic.

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