Chinese Companies Stockpile Chips for Autos, Exacerbating Global Chip Shortage

Chinese Companies Stockpile Chips for Autos, Exacerbating Global Chip Shortage
Workers producing LED chips at a factory in Huaian city, in China's eastern Jiangsu Province, on June 16, 2020. STR/AFP via Getty Images
Jennifer Bateman
Updated:

A global shortage of automotive chips has become critical this year, with almost all major automakers experiencing varying degrees of production cutbacks or short-term shutdowns resulting from a shortage caused by Chinese companies stockpiling chips.

Although Taiwan Semiconductor Manufacturing (TSMC), the world’s largest producer of chips, has activated its “super hot runs’' queueing mode of production and has cut the production process in half, many orders are still delayed by 6 to 9 months for delivery.