Snarled supply chains created by a global pandemic have exacerbated a chip shortage for well over a year now, and a major automaker doesn’t think it

Volkswagen says the chip shortage will last past 2023, and the company is preparing for a ‘new normal’ in supply-chain crisis

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2022-09-21 02:30:09

Snarled supply chains created by a global pandemic have exacerbated a chip shortage for well over a year now, and a major automaker doesn’t think it will be resolved anytime soon.

Since the end of 2020, demand for semiconductor chips has far outpaced supply of the essential components used to manufacture electronics devices. The shortage has forced carmakers, phone developers, and more to reduce their manufacturing output while the wait for materials continues.

That wait is set to go on for a while yet, and German automaker Volkswagen is turning its focus toward adapting to the shortage.

“There will likely still be a structural shortfall in semiconductors up to and including 2023,” Volkswagen head of procurement Murat Aksel told the weekly German trade publication Automobilwoche Monday.

Rather than the chip supply increasing, Aksel warned that geopolitical uncertainty surrounding major chip producers was creating even more obstacles in a supply-chain crisis that shows few signs of resolving itself.

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