Posted on 16 Aug 2023
Audi expects the semiconductor supply crunch challenging the automotive industry for the past two years to continue improving this year. However, the German carmaker also warns the issue will last years as demand continues to outpace supply.
“We can see that our operational and strategic measures are having an effect and we assume that the supply situation with semiconductors will continue to ease this year,” a spokesperson tells Kallanish. “However, we still have to assume that there will be significant bottlenecks in automotive-specific semiconductor technologies and in high-voltage semiconductors. The right semiconductors in the right quantities will be the key to future development.”
According to the Audi representative, the entire automotive industry is affected, not just the brands of the Volkswagen Group. “There is currently a structural undersupply of semiconductors across all sectors. This problem will not be solved in the short term, as building semiconductor manufacturing capacity takes several years and costs billions,” she added.
“Whilst acknowledging the challenges the German car industry faces due to semiconductor shortages, I remain optimistic. We are steadily emerging from this shortage, with lead times returning to customary levels, reflecting the global supply chain’s resilience,” comments Dunstan Power, managing director of EV charging consultancy Versinetic.
Last week, Taiwan Semiconductor Manufacturing Co (TSMC) announced it will spend €3.5 billion ($3.8 billion) to build a chip factory in Germany – its first in Europe. The plant will manufacture up to 40,000 chips per month for automotive, industrial and domestic applications. First production is planned for 2027.
The factory in Dresden will receive up to €5 billion in funding from the German government, in efforts to build a semiconductor manufacturing ecosystem in the country. The facility will be owned by the European Semiconductor Manufacturing Company (ESCM), 70% owned by TSMC. Bosch, Infineon and NXP will each have a 10% stake in the company.
Earlier this year, the EU passed the European Chips Act, a €43 billion subsidy plan aimed at doubling semiconductor manufacturing capacity by 2030. Electric and semi-autonomous vehicles are driving up demand for semiconductors, as they can use around 3,000 chips, roughly double the average number for traditional cars.
Source:Kallanish
