In recent years, semiconductor shortages have impacted various industries across the globe including the automobile market. And according to an Audi executive, the shortages of chips will likely continue for more years in Germany.

Semiconductor shortage woes continue

A senior Audi manager stated that the chip shortage issue has created a bottleneck in Germany’s automobile industry. He adds that the issue will take years to deal with. For those unaware, the global chip shortage issue first began between 2018 and 2019, quickly engulfing various industries. The dire situation at the time had even led to automobile production being completely halted in certain parts of Europe.

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Meanwhile, German carmakers and other electronics manufacturers have been severely impacted with production facing delays. These shortages are being faced across the globe so executives and policymakers are seeking to reduce their reliance on Asian and US chipmakers. At the moment, Germany has brought TSMC (the world’s largest contract chipmaker) over with billions of euros in subsidies. On the other hand, Intel also announced that it will be setting up a semiconductor factory in the region. Apart from Germany, the Taiwanese chipmaker is also expanding in Japan and the US.

But despite billions of dollars in investments, the shortage will still take years to alleviate, as per Renate Vachenauer, head of procurement at Audi. The senior official further added that automobile companies could help to ease these supply issues by using different chips. As of right now, the German market deals in around 8,000 different types of semiconductors for vehicles on the road. She added that “We have to use many levers to stabilize the supply of semiconductors and also stock up on the broker market to some extent.”

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