The shortage of semiconductors came from the left field and hit the industry at a dangerous time. Sales have dropped worldwide. In Europe, for example, they decreased by 25 percent in 2020.
It all happens while automakers are trying to navigate a shift in basic technology from internal combustion engines to batteries, which has subjected them to new competition from Tesla, the California company that has become by far the most valuable automaker in the world, and is emerging. Chinese manufacturers like Nio.
Exactly how long the deficit will last is unclear. It can take 20 to 25 weeks for new orders to be placed to make chips and work through the supply chain to reach cars, says Michael Hogan, senior vice president at GlobalFoundries, a major chip maker serving the automotive industry. and other markets.
“We do everything humanly possible to prioritize our production for cars,” he said. Hogan said.
The German car electronics supplier, Bosch, said the shortage is particularly large for integrated circuits used to control engines, transmissions and other key functions. “Despite the difficult market situation, Bosch is doing everything in its power to keep its customers supplied and minimize any further impact,” the company said in a statement.
Car manufacturers and suppliers respond as best they can. BMW, based in Munich, said they could maintain production, but that they were observing the situation intensively and were in constant contact with suppliers.
For automakers already stressed by the pandemic, the impact is inevitable. Honda said on Wednesday that it would suspend production activities at its Civics plant in Swindon, England, from March on Monday. Honda mentioned supply chain problems, including semiconductor shortages.
The German supplier Continental, which is mainly known for tires but also manufactures electronic components, has called on semiconductor manufacturers to build capacity in the foundries that manufacture chips.