The chip shortage may reduce the global automobile production by one fifth in 2026

German Association of the Automotive Industry (VDA) released a research report on January 26, saying that the continuous chip shortage will continue to drag down automobile production in the future. By 2026, the global auto production is expected to decline by one fifth, which is equivalent to about 18 million cars.

Semiconductor demand in the auto industry is expected to triple by 2030, the report said. This growth rate is stronger than other industries. By the end of this century, the number of chips needed by automobile manufacturers may reach 14% of the total number of chips in the world. This makes them the third largest chip consumer after mobile communication and data storage companies. The high demand for chips in the automotive industry is due to the expansion of the electric vehicle market and the increasing share of driver assistance systems.

The European Union hopes to promote the construction of chip factories in Europe according to “EU Chips Act”. In addition, Wolfspeed, an American chip manufacturer, hopes to cooperate with ZF, a German auto parts supplier, to establish a silicon carbide semiconductor factory in Salzburg, Germany. It is reported that the factory is expected to become the world's largest silicon carbide semiconductor plant when it is put into operation within four years.

Source: Xinhua Finance

Reporter: He Lili

Editor: Wang Chunxia