Shortage of chips causes suspension of production of Volkswagens in China: report

22:26, December 06, 2020

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  Chip shortage may disrupt vehicle output

  A technician works at the workshop of the carmaking-related chip production company in Qinhuangdao, Hebei province.A shortage of semiconductors necessary for making the electronic components of automobiles is likely to disrupt vehicle production in China well into the next year, but without widespre

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  Chinese auto makers seek way out of chip shortage

  Workers are busy at the production line of Shaanxi Auto Xinjiang Automobile Co., Ltd. in Urumqi, northwest Chinas Xinjiang Uygur Autonomous Region, on Sept. 24, 2020. (Photo: Xinhua)With the shortage of automobile chips expected to linger, some Chinese auto makers need to brace for a short-term disruption to production next year, according to a local industry association.A rise in chip prices is also likely, resulting from an increase in advance purchasing by companies along the industry chain and the difficulties of increasing production capacity in the short run, said Li Shaohua, an official with the China Association of Automobile Manufacturers (CAAM), in a recent interview with Auto Review magazine.To navigate such a bottleneck, Chinese auto companies and chip makers need joint efforts in technological innovation and upgrading to stabilize production and bolster supply chains.Unexpected demandComputer chips are widely used in the automotive industry, being applied to crucial vehicle parts and functions, such as power systems, chassis control and advanced driver-assistance systems (ADAS).However, the relatively conservative sentiments in global chip investment in recent years have triggered unbalanced supply and demand, while the COVID-19 pandemic has exacerbated the cautiousness in capacity investment, said Li, stressing that the automotive chip shortage is a common challenge facing the auto industry worldwide.Since the beginning of this month, a few automakers have been hit by chip shortages to varying degrees, including SAIC Volkswagen and FAW-Volkswagen, both joint ventures between Chinese automakers and German auto giant Volkswagen AG.Volkswagen Group China attributed the chip shortage in the auto industry to the uncertainties caused by COVID-19 and the full-speed recovery of Chinas auto market, according to an interview with the economic channel of the China Central Television.Data from the CAAM shows that consumer demand saw a rapid rebound in th...

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  China chips in with help after hurricane horror

  Hurricane Iota remains a nightmare for residents of Providencia, a 17-square-kilometer island of Colombia in the Caribbean Sea now struggling to recover from its ravages.