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Automotive chip supply shortages to ease in Q4 - MIIT

Automotive chip supply shortages to ease in Q4 - MIIT...

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21 Oct 2021, 09:56 IST
Automotive chip supply shortages to ease in Q4 - MIIT

The shortage of semiconductors for auto applications continues to impact vehicle manufacturing in China but the problem is likely to ease this quarter compared with Q3, officials from the country's Ministry of Industry and Information Technology (MIIT) maintained at a press conference in Beijing held on October 19.

Responding to media questions about the ongoing issue, MIIT spokesperson Luo Junjie noted that the global shortage of these chips has been affecting automakers both in and out of China, including many leading global auto manufacturers.

"Domestically speaking, many auto enterprises have been forced to scale back their operations or temporarily suspend production," he acknowledged.

In September, China's automobile production reached 2.08 million units, down by a large 17.9% on year, while sales reached 2.07 million, off by an even larger 19.6%, he noted, pointing out with such rates of decline for both had been "rare" in the past few years.

"As of now, the impact of the chip shortage on the auto industry is still prominent, but if we consider the emerging signs comprehensively, the situation will ease from Q3 in Q4," Luo stated.

The global shortage of semiconductor chips emerged in 2020, due to the COVID-19 pandemic, a global mismatch between auto chip supply and demand, and a fire at a major chip fabrication plant earlier this year, according to Luo. He was referring to the fire in March at Japanese semiconductor maker Renesas Electronics Corporation, supplier of 30% of the global market for microcontroller units used in cars, Mysteel Global notes.

"MIIT has been closely monitoring and actively addressing the auto chip shortage," Luo stressed. This included simplifying the procedures for automakers needing to find substitute auto chips that involve changes to the automotive design and performance parameters.

Written by Olivia Zhang, zhangwd@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.


21 Oct 2021, 09:56 IST



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