SAIC Motor’s chairman says auto chip shortage likely to ease in late July

Shanghai (Gasgoo)- The industry-wide chip shortage is likely to be alleviated in late July and the chip supply will basically get back to normal in the third or fourth quarter of this year, SAIC Motor's Chairman Chen Hong said on June 30 at an annual shareholder meeting.

Photo credit: SAIC Motor

Mr. Chen added that it is the first time for the automotive industry to confront chip shortage. Automakers did not contact with chip suppliers directly, while they have to build direct connection now due to the issue.

SAIC Motor previously said via an investment information platform that the auto chip shortage is a problem common to the global automotive industry. To cushion the impact, relevant automakers and auto parts suppliers have flexibly adjusted production plans based on their actual situations. The general impact of chip shortage is expected to be controllable.

The company revealed it has deployed AI chip business. However, it still takes time to put products into scale application from the sample stage and complete product upgrades.

The impact caused by the chip shortage is still transitory or short-term, Xu Haidong, assistant secretary of the China Association of Automobile Manufacturers, said at the 2021 China Auto Forum held in mid-June. The impact on restricting car sales in the first half of 2021 should be limited to within 10%, and the chip shortfall is expected to be whittled down during the second half of this year.

Mr. Xu also noted that the chip shortage will not have an excessive influence on China's annual car sales.