Photo: Volvo
The chip shortage that’s been wreaking havoc in most industries in the last couple of years is still causing major problems in the automotive world these days, but as it turns out, not all companies continue to be affected.
While Toyota has recently announced a production cut and more temporary production suspensions, Volvo Cars executives have every reason to be happy about the current chip supply. This is because the company has managed to resolve the constrained inventory, with the production now running at full speed.
CEO Jim Rowan explained on CNBC’s “Squawk Box Europe” that his company’s chip inventory is at full supply, so the car maker is now “through those semiconductor issues.”
While, at first glance, it just sounds like the chip shortage is a thing of the past, it certainly isn’t. The global chip inventory remains as volatile as possible, and the lockdowns happening in China mixed with the geopolitical tensions in Europe create more uncertainty that makes a long-term prediction rather impossible.
Volvo, however, says all the problems that have been encountered in the second quarter, including the lockdowns in China, “are now behind us,” therefore giving hope that the semiconductor crisis is finally easing off.
The carmaker also says that it’s not seeing any slowdown in terms of demand, and despite the increasing prices, which have been obviously caused by the higher cost of raw materials, its vehicles continue to sell like hotcakes.
Certainly, Volvo’s announcement gives hope the end of the chip shortage is close, but analysts and tech industry experts warn the crisis isn’t by any means over. Intel, for instance, believes the struggle wouldn’t come to an end earlier than 2024, especially as chipmakers themselves would continue to face new challenges to keep the production going.
At this point, the consensus is that a chip inventory improvement would be recorded in late 2022, but nobody can anticipate how the market would evolve beginning with 2023.
CEO Jim Rowan explained on CNBC’s “Squawk Box Europe” that his company’s chip inventory is at full supply, so the car maker is now “through those semiconductor issues.”
While, at first glance, it just sounds like the chip shortage is a thing of the past, it certainly isn’t. The global chip inventory remains as volatile as possible, and the lockdowns happening in China mixed with the geopolitical tensions in Europe create more uncertainty that makes a long-term prediction rather impossible.
Volvo, however, says all the problems that have been encountered in the second quarter, including the lockdowns in China, “are now behind us,” therefore giving hope that the semiconductor crisis is finally easing off.
The carmaker also says that it’s not seeing any slowdown in terms of demand, and despite the increasing prices, which have been obviously caused by the higher cost of raw materials, its vehicles continue to sell like hotcakes.
Certainly, Volvo’s announcement gives hope the end of the chip shortage is close, but analysts and tech industry experts warn the crisis isn’t by any means over. Intel, for instance, believes the struggle wouldn’t come to an end earlier than 2024, especially as chipmakers themselves would continue to face new challenges to keep the production going.
At this point, the consensus is that a chip inventory improvement would be recorded in late 2022, but nobody can anticipate how the market would evolve beginning with 2023.
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