Auto industry executives are rattled by a global shortage of semiconductors which is hitting production in China, after hoping the world’s biggest car market could spearhead global recovery in the sector, reported Reuters.
Volkswagen AG, China’s biggest foreign automaker which wants to sell over four million vehicles in the country, said the impact of the shortage remains unabated in the second quarter this year.
Stephan Woellenstein, Volkswagen’s China chief, told reporters on Sunday it was hard to gauge how much production Volkswagen might lose week to week or even month to month because of the chip shortage. “It’s really like fire-fighting… In some cases, we have switched to another chip so we changed suppliers,” he said, ahead of the Shanghai auto show which opens on Monday.
In 2019, automotive groups accounted for roughly a tenth of the $429 billion semiconductor market, according to McKinsey, with NXP Semiconductor, Germany’s Infineon and Renesas among key suppliers to the sector.