Infineon strives to satisfy vehicle industry demand from customers as offer chains creak

BERLIN — German chip maker Infineon stated on Thursday it was experiencing challenges to meet vehicle sector need for microcontrollers owing to ability constraints at the agreement manufacturers it depends on.

But the best automotive chip supplier stated it was coping with climbing demand for electrical power chips and sensors that it would make alone, and forging nearer direct ties with automakers these as  Volkswagen to better serve their wants.

“Semiconductor shortages are being felt in the total automotive offer chain and the restoration is occurring speedier than envisioned,” CEO Reinhard Ploss mentioned right after Infineon noted forecast-beating quarterly results. “It will take time to carry additional capacity on the web.”

A snapback in demand from automakers that slowed production early in the coronavirus pandemic has strained offer lines, with foundry partners that Infineon and many others count on this sort of as TSMC struggling to retain rate.

A shortage of chips could put about 670,000 models of worldwide gentle car or truck generation at possibility in the initial quarter of this year, info agency IHS Markit mentioned, warning that weak spot could lengthen into the 3rd quarter.

Though Infineon would make most of its energy chips, analysts say it outsources in excess of fifty percent its manufacturing of CMOS (Complementary Steel Oxide Semiconductor) products and solutions these kinds of as microcontrollers that are made use of to operate industrial and automotive apps.