‘Chip shortage could last till 2023’ | Sunday Observer

‘Chip shortage could last till 2023’

12 September, 2021

The chip shortage that is disrupting global car production could continue into 2022 and even 2023, a leading German car industry figure said.

Covid had been a stress test for the industry, which needed a thorough review of its supply chains, Daimler chairman Ola Källenius said.

Supplies of semiconductor chips have been failing to meet demand in a wide range of industries. These include carmaking, which staged a quick recovery from the pandemic.

The shortages had caused shutdowns in Malaysia and would “significantly impact production and sales in the third quarter”, Mr Källenius, who is also head of Mercedes-Benz, told the BBC at the International Mobility show in Munich. “Chip producers say this will bleed into 2022 from a structural point of view and then gradually get better,” he added.

This meant the shortages could last into 2023, but “hopefully not at the level of severity that we have experienced here in the last couple of months,” he said