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The semiconductor shortage has moved out of left field, hitting the industry at a perilous time. Sales have plunged around the world. In Europe, for example, they were down 25% in 2020.
All of this is happening as automakers attempt to navigate a core technology shift from internal combustion engines to batteries, which has presented them with new competition from Tesla, the California-based company that has by far become the automaker. most valuable automobile in the world, and emerging. Chinese manufacturers like Nio.
The exact duration of the shortage is unclear. It can take 20 to 25 weeks from the time new orders are placed for the chips to be produced and through the supply chain to reach the cars, said Michael Hogan, senior vice president of GlobalFoundries, a large chip maker serving the automotive industry and other markets.
“We are doing everything humanly possible to prioritize our automotive production,” Hogan said.
German automotive electronics supplier Bosch said the shortage was particularly acute for integrated circuits used to control engines, transmissions and other key functions. “Despite the difficult market situation, Bosch is doing everything it can to ensure supply to its customers and minimize any further impact,” the company said in a statement.
Automakers and suppliers are responding as best they can. BMW, based in Munich, said it had been able to keep production going, but was “watching the situation intensively” and in constant contact with suppliers.
For automakers already stressed by the pandemic, some impact is inevitable. Honda said on Wednesday it would shut down some production operations at its Swindon, England plant that builds Civics for at least four days starting Monday. Honda cited supply chain issues, including semiconductor shortages.
German supplier Continental, which is best known for its tires but also produces electronic components, called on semiconductor producers to boost the capacity of foundries that produce chips.
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