Semiconductor chips shortage “real storm” – JLR chief

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LR says the chips shortage affecting the semiconductor industry is creating a “real storm” as suppliers battle to keep up with huge demand.

Several stars are aligning to create surging need for chips, such as industry starting to recover from the COVID-19 pandemic, resulting in a global shortage of semiconductors for automakers and electronics makers, causing delays.

“It is a real storm for the industry, no doubt [about] that,” said JLR chief executive, Thierry Bolloré. “We could mitigate shortages which were already on the market since the beginning of the crisis. You could see our excellent results of the last fiscal year, thanks to that mitigation.

“However, a certain number of accidents occurred in Japan with some suppliers and also in Texas – all that together has created an even stronger storm and we are affected. For me it is going to last because we have learned – because we are not in direct contact with our microprocessor suppliers – it’s our Tier 1s who are in contact with them today.

Automakers should expect more chips in the second half of the year, but the overall squeeze on supply is likely to continue into 2022, according to one of the industry’s largest suppliers, Infineon, in comments made in May this year.