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.