Shine trader limited reports:
“There is no doubt that this shortage will continue until 2022, at least until the second half of the year,” said Scott Keogh, CEO of Volkswagen Group America.
Chip shortages have caused global automakers to cut car production, but as car prices have risen, it has also pushed up profits. Car brake sensors, power steering and entertainment systems will all use chips.
Keogh added that although this problem may be alleviated in the fourth quarter of this year, the industry still cannot meet the market’s demand for cars.
He said that in the near future, a possible change is that automakers will try to reduce the number of chips required for car and truck parts.
”Historically, we made decisions as if chips were in unlimited supply, so each module needed a chip, each window regulator, and modulator,” he said. “When we develop a car, we have to start thinking, can we make more modules with fewer chips? This can be done. These are the things we are focusing on.”
Regarding the argument that the US government should fund the construction of more chip factories, Keogh said it will take billions of dollars and at least four years. “I don’t know if calling the government is the solution to the shortage of chips.”
Keogh said that although chips are the current challenge, what will be faced next is the growing demand for electric vehicles and the batteries needed to power them.
Reprint indicated source：Spark Global Limited information