Shortage of chips to last until 2024: Volkswagen

According to the latest report, the global chip shortage is still ongoing. The CEOs of several chip companies said last year that the chip shortage will continue for some time.

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Recently, Volkswagen Group Chief Financial Officer Arno Antlitz said in an interview with German media that the supply of semiconductor chips is unlikely to fully meet demand again before 2024.

Antlitz said that while supply bottlenecks may start to show signs of easing by the end of this year, and chip production will return to 2019 levels next year, it will still not be enough to meet the higher demand for chips in the market. “The structural undersupply may not be resolved until 2024,” he said.

Antlitz also said that in addition to the chip supply issue, the lack of wiring harnesses has also affected vehicle production. Ukraine is the world’s most important wire harness producer. Affected by the situation in Russia and Ukraine, the supply of wire harnesses from the country has experienced problems. Antlitz revealed that Volkswagen is establishing new supply relationships to source the parts from suppliers in other countries.

Furthermore, Volkswagen had said in December last year that the chip crunch would continue to challenge Volkswagen through at least the first half of 2022, and should improve slightly throughout the year.

(via)