Semiconductor supply bottlenecks persist

Chip production in China

Because of the lockdown, China is delivering fewer semiconductors than customers have ordered.

(Photo: VIA REUTERS)

Nothing works anymore: In Germany and the rest of Europe, the production lines keep standing still. The order books of many companies are full to the brim. There is a lack of semiconductors.

The world has changed rapidly in recent months, but one thing has remained the same: chips are scarce. Customers have been struggling with serious delivery bottlenecks for two years now.

It doesn’t have to be like that. This year, numerous semiconductor factories started mass production. The fact that the components are still missing is mainly due to China. Because of the countless lockdowns, the People’s Republic exports too few chips.

This shows Europe how irresponsible it is to rely on China. The rulers in Beijing simply don’t care that they are paralyzing companies worldwide with their rabid anti-Covid measures.

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For companies in this country, this means they urgently need to look for suppliers outside of China. Anyone who is dependent on components from the country can also run their business from the casino, the chances of winning are similarly high.

China doesn’t care about German companies

And the politicians in Berlin and Brussels have to speed up even more in order to build up a powerful European chip industry. The fact that some large, new semiconductor plants will soon be built by Intel, Globalfoundries and ST Microelectronics in Europe is probably just the beginning.

A strong chip industry would be a boon to local customers who depend on reliable supplies. In addition, Europe would finally have something to oppose China if the People’s Republic cannot or does not want to deliver in the future.

Germany and the EU must therefore under no circumstances call off the race to catch up with chips once the deliveries from China and the rest of Asia arrive on time again.

More: Two-year delivery period: Lockdowns in China are driving chip customers to despair

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