SHORTAGE ALERT
Auto chip shortage has Germany seeking relief from Taiwan manufacturers
In a recent article published by Reuters, the German Economy Minister along with the German government have asked their Taiwanese counterparts to “persuade manufacturers to help ease a shortage of semiconductor chips in the auto sector which is hampering its fledgling economic recovery from the COVID-19 pandemic.” The goal is to increase “capacities and deliveries of these semiconductors in the short and medium term.”
The wide spread shortage has hit the automotive industry especially hard. It has already “affected Volkswagen, Ford Motor, Subaru, Toyota Motor, Nissan Motor, Fiat Chrysler Automobiles and other car makers.”
In addition to Germany feeling the impact, China automotive production has also taken a substantial cut since December 2020. According to DigiTimes, “more than 90% of automotive semiconductor components used in China are imported, making the country’s automakers more susceptible to short supply, the sources indicated. Automotive semiconductor components account for about 40% of total production cost for a fuel car and over 70% for an electric vehicle (EV), the sources noted.”
The shift in the semiconductor market and the resulting shortages are being felt throughout the industry and it is expected to last well into 2021. Finding the parts you need to overcome the immediate shortages solves today’s problems, but a custom supply chain solution using Converge’s connected distribution puts you in the position to solve sourcing challenges for the future.
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Read the full article from Reuters
Read the full article from DigiTimes