The semiconductor shortage arose from the left side, affecting the industry at a perilous time. Sales fell around the world. In Europe, for example, it is down 25 percent in 2020.
All of this happened as automakers attempt to shift basic technology from internal combustion engines to batteries, which has faced new competition from Tesla, the California-based company that has become the most valuable automaker. In the world and emerging Chinese manufacturers such as Nio
How long the shortage will last is unclear. Michael Hogan, Senior Vice President of GlobalFoundries This is a large chipmaker serving the automotive and factories in 20 to 25 weeks, possibly 20-25 weeks.
“We are doing everything we can to prioritize productivity for vehicles,” said Mr. Hogan.
Bosch, a German car electronics supplier, said the shortage was severe, especially for the integrated circuits used to control engines, transmissions and other key functions. It’s tough, but Bosch is doing whatever it takes to ensure customers get the product and keep the impact to a minimum, ”the company said in a statement.
Carmakers and suppliers are reacting as hard as they can. Munich-based BMW says it can maintain production but “intensely monitor the situation” and keep in touch with suppliers.
For automakers that are stressed by the epidemic, some impacts are inevitable. Honda said on Wednesday it would shut down some of its production activities at a facility in Swindon, England, where Civics were built for at least four days starting Monday. Honda cited supply chain problems, including a lack of semiconductors.
Continental, a German supplier, best known for its tires. But also electronic components makers call on semiconductor manufacturers to empower foundries that produce chips.