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Infineon’s CEO Says Chip Shortage Will Last “Well Into Next Year”

Courtesy of ZeroHedge View original post here.

Yet another corporate executive has come out and thrown cold water on the idea that the ongoing chip shortage would be solved anytime soon.

The latest dose of reality was offered up by Infineon's CEO, who said this week that the chip shortage would last "well into next year," according to Bloomberg.

Infineon a German semiconductor manufacturer founded in 1999 that is one of the 10 largest semiconductor manufacturers in the world. Sales to the automotive industry make up about 40% of the company's revenue. 

CEO Reinhard Ploss made the comments at an auto conference this week, stating that the company wouldn't be able to work off its order backlog until 2022. 

Obviously, he noted that it would be a "positive" if chip and car production returned back to "balance" by Q3 of next year. 

He also made the comment that he is confident higher demand for car chips would continue and that any bubble after capacity additions would be "small". 

Ploss' comments follow that of Ford's CFO John Lawler, who offered a similar underwhelming take on when the chip shortage would start to right itself. 

As we noted in a recent write-up, despite the chip shortage, Ford plans on launching its F-150 Lightning, the all-electric version of Ford’s F-150 pickup truck, in coming months. Executives said the company was in "final preparations" for the launch. 

“Semiconductor availability remains a challenge, but markedly improved from the second quarter,” the company said in a release last week.

Ford's CEO commented that the company's challenge is "to brave production constraints and increase availability to meet this incredible demand, both in North America and in Europe and also in China."

CFO Lawler said of the semi shortage that “the constraints on the chips will remain fluid through 2022, and they could extend into 2023”.

GM CEO Mary Barra had echoed these sentiments weeks ago during GM's earnings call, stating: “We think [the shortage] will get better toward the end of the year, but I have to tell you, it still continues to be somewhat volatile.”

 


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