Shortage of automotive chips will last until 2022 or slow down the transformation of electric vehicles

A number of car factories around the world have suspended production due to a shortage of car chips. In late July, U.S. Commerce Secretary Gina Raimondo said the shortage of chips among carmakers was improving. But, according to Bloomberg, "it turns out it's not much better." This week, suppliers of these important electronic components warned that the problem was far from over.

Infineon and NXP, the world's two biggest car chipmakers, say supply and demand will not be balanced until the middle of next year, meaning that the lack of core, which began in 2020, will continue to be a headache for carmakers. Kurt Sievers, chief executive of NXP, said in an interview that "it is very important to emphasize that our supply growth" is still "in short supply" and that the tight supply situation will continue until 2022.

Although chipmakers' revenues have soared and profits have hit record highs, car production is still limited, preventing carmakers from taking full advantage of the growth in market demand in the wake of the epidemic. In the article, Bloomberg pointed out that the uncertainty caused by the persistent chip shortage will cost automakers 110 billion dollars in sales this year.

(SMMT), an association of British automakers and traders, cut its annual sales forecast for the UK for the third time this year, citing continuing supply chain problems and staff shortages caused by quarantine. The number of new cars registered in the country was 123296 in July, according to the agency.

Chip shortages may also slow the transformation of electric vehicles. Major car brands have launched a number of new electric vehicles this year, and even traditional power models such as Ford Fmur150 pickup trucks have launched electric versions, while electric vehicles' batteries, motors and monitoring systems, new entertainment, safety and driving aids all require semiconductors.

According to Sievers, electric vehicles account for twice as many semiconductors (including hybrids) as conventional fuel-fueled vehicles. NXP's car chip sales jumped 21% in the first half of this year compared with the same period in 2019, according to Sievers. By 2022, electric vehicles will account for about 1/4 of car production, double the 12% in 2020, and demand for chips will rise.