Break with tradition! Volkswagen may purchase directly from chip manufacturers

According to foreign media reports, an executive of Volkswagen revealed that Volkswagen is seeking to purchase chips directly from chip manufacturers as global automakers are coping with chip shortages.

ID.4 (Image source: Volkswagen)

The executive, who declined to be identified, said: 'We are considering a direct contractual relationship (with chip manufacturers). Given the importance of semiconductors to today’s cars, the automotive industry will have to respond. .'

Due to the shortage of chips caused by production delays, automakers around the world are adjusting their assembly lines. Some chip makers blame the supply shortage on the faster-than-expected recovery after the pandemic.

Volkswagen issued a warning on the shortage of chips as early as December 4 last year. The chips currently used by the company come from major suppliers such as Bosch and China, and there is no direct contract or supply with semiconductor manufacturers. protocol.

The executive said that although it is still unclear what caused the shortage, it is important to have multiple supply channels. Therefore, Volkswagen may break through only purchasing chips from top auto parts suppliers. tradition of. Bosch and Continental, two of the world's largest auto suppliers, declined to comment.

The executive revealed that Volkswagen is currently holding multi-party talks with major suppliers, chip manufacturers and wafer manufacturers to resolve this issue. He said: 'We must ensure that wafer and semiconductor manufacturers understand our needs.' The executive said that Volkswagen's solution may include increasing inventory, because unlike other auto parts, chips do not take up a lot of storage space.

The automakers affected by the chip shortage also include Ford, Toyota, Nissan and Daimler. Due to the chip shortage, these car companies have to reduce production or plan to reduce working hours.

McKinsey’s data show that in 2019, the purchase of automotive groups accounted for approximately one-tenth of the $429 billion semiconductor market. NXP Semiconductors, Infineon of Germany and Renesas of Japan are the main suppliers in this industry. Volkswagen expects that chip supply will continue to be tight in the first quarter of this year, but will recover from April to June. The company's goal is to make up for the previous production delays in the second half of the year.