Semiconductor Shortages In Germany's Automotive Industry Will Take Years To Solve

JAKARTA - A shortage of semiconductors has created obstacles for the German auto industry that will take years to resolve despite plans by chipmakers to build factories in the country. This was conveyed by a senior Audi manager as reported on Friday, August 11.

German automakers and electronics manufacturers have been heavily affected by delays in manufacturing caused by a global shortage of semiconductors. Executives and policymakers are reconsidering supply chains and seeking to reduce dependence on several chip manufacturers in Asia and the United States.

Berlin has captivated the world's largest contract chipmaker with billions of euros in subsidies. Chip manufacturers such as Intel from the United States and TSMC from Taiwan this year announced plans to build factories in Germany.

"It took years, after all. It relates to billions of dollars invested," said Renate Vachenauer, head of procurement at Audi owned by Volkswagen, as reported by the newspaper Augsburger Allgemeine.

Vachenauer says automakers can overcome these barriers by reducing the variation of chips used from 8,000 different types of vehicles today.

"We have to use a lot of levers to stabilize semiconductor supplies and also increase stock in the intermediary market to some extent," he added.