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October 17, 2021 08:18 AM

Chip crunch may stretch through 2022, Bosch exec says

Only 20% of July orders could be met and more than half of August demand went unfilled

Bloomberg
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    Microchip 300 million millimeter semiconductor wafer
    BLOOMBERG

    A 300 millimeter semiconductor wafer is pictured.

    The supply crunch of semiconductors for automakers will likely continue through 2022, though the shortage may become less severe than what was seen in the past summer, according to a senior executive of Bosch China Investment.

    Chip producers were only able to meet about 20 percent of clients’ orders in July and despite some improvements in the situation in August, more than half of the demand still could not be satisfied, Jiang Jian, a vice president of Bosch China, said on the sidelines of the China Auto Supply Chain Conference.

    The squeeze is expected to extend through next year, with the gap falling to about 20 percent of the levels seen in the first half of this year, he said.

    The worldwide shortage of semiconductors that has been going on for almost 12 months now may deplete light-vehicle production in China by as many as 2 million units this year, an official of the China Machinery Industry Federation said earlier.

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