One-time chip supply shocks over, but structural deficit remains, Bosch CEO says

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Ludwigsburg, Nov 10 (Businesshala) – The CEO of German technology conglomerate Robert Bosch GmbH said on Wednesday that although the one-time supply shocks in the semiconductor market had passed, it still lacked capacity to meet global demand.

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Speaking at a car industry conference organized by Autos publication Automobilwoche in Ludwigsburg, Volkmar Denner said, “There were once problems that have now been dealt with.”

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“What is happening now is a structural deficit: there is much more demand than there is capacity to produce.”

Bosch has earmarked more than 400 million euros ($462.56 million) for investment in microchip production in Germany and Malaysia next year, with the largest portion of its budget going for 300-millimeter wafers for the rapid expansion of its Dresden, Germany factory. Expenses have been spent on the expansion, which was done at the inauguration. June.

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But Bosch itself relies on suppliers to make some of its chips and part of the sensors, Denner said, and thus was also feeling the pain of constraints that have crippled the supply of semiconductor-dependent products — including cars and cars. Includes a range of electronics – worldwide in recent months.

“In things we make ourselves, we can take the pressure out of the pipeline. But Bosch sensors have a lot of parts that we buy from others,” Denner said.

($1 = 0.8648 Euro)

Reporting by Victoria Waldersee Editing by Miranda Murray

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