Type to search

‘Darkest Moments’ of Chip Shortage Have Passed: Securities Times

Car production and sales are expected to rebound in China over the next few months as the worst of the global chip shortage is believed to be over.


A worker inspects semiconductor chips at the chip packaging firm Unisem plant in Ipoh, Malaysia, on Oct 15, 2021. Photo: Lim Huey Teng, Reuters.

 

China’s car production and sales are expected to gradually rebound in the next few months as the “darkest moments” of the chip shortage have passed, the Beijing-based Securities Times reported on Monday, citing industry experts.

Foundries have expanded their investment in auto chips over the past year as prices rose amid the supply chain woes, but now the shortage of chips in some sub-categories has been alleviated, the report – which quoted Su Linlin, a vice president of Chinese chipmaker Unigroup Guoxin Microelectronics – as saying.

Chip plants in Malaysia are gradually restoring their capacity as the peak of Covid-19 in Southeast Asia eases, and chip supplies for the fourth quarter are guaranteed, a report from Shanxi Securities said. But Cui Dongshu, secretary-general of the China Passenger Car Association, expects the chip shortage won’t end till around the Lunar New Year in February 2022, as autumn and winter are peak seasons for auto sales in China.

Read the full story: Securities Times.

 

ALSO SEE:

TSMC, Sony Said to be Considering Joint Chip Factory

China’s SMIC To Pump $8.87 Billion Into New Shanghai Chip Plant

 

 

Iris Hong

Iris Hong is a senior reporter for the China desk, and has special interests in fintech, e-commerce, AI, and electric vehicles. She began her career in 2006 and worked for Interfax News Agency and for PayPal before joining Asia Financial in July 2020. You can reach out to Iris on Twitter at @Iris23360981

logo

AF China Bond