A post lock-down sales surge and increased EV adaption exacerbate the problem.
The global semiconductor chip shortage that’s impacting manufacturing operations for Toyota, Honda, Ford, and other automakers, has the potential to have more far-reaching consequences in China, the world’s largest automotive marketplace. According to a Bloomberg News story, Chinese car manufacturers‘ chip-supply issues go beyond current pandemic-related causes.
China Lacks Domestic Skills For Car-Chip Production
Yuan Chengyin, CEO of China’s National New Energy Vehicle Technology Innovation Center, told Bloomberg that short-term chip shortages could be overcome. He adds that the country’s increasing success with EVs, a lack of domestic technical skills, and global trade and security issues can cause longer-term problems. Without increasing China’s own chip production capabilities, the country’s automotive semiconductor shortage could last for up to a decade, remarks Yuan.
The shortage of automotive chips “…is a historical problem, as China relied on imported chips from Europe, the United States, Malaysia, Japan, and South Korea,” said Yale Zhang of Automotive Foresight in a recent China Daily story. Automotive Foresight is a consulting firm based in Shanghai.
