SAIC States Chip Shortage Will End After 3rd Quarter

The Shanghai Automotive Industry Corporation has stated that they expect the semiconductor crisis in the global auto industry that they expect the situation to be alleviated by the 3rd quarter.

SAIC Chairman Chen Hong made the statement during the annual shareholders general meeting. He stated specific that the chip shortage can be ended by late July. While OEM manufacturers struggled to produce in June, according to SAIC, things will be back to normal in the 3rd quarter.

Chen, when pursued further, said that the chip shortage would not affect the company’s annual target of selling 6.8 million vehicles.

Company president Wang Xiaoqiu state the lack of chips has had a great impact on the company. Though he also noted that SAIC’s total performance had not been affected.

Chen Hong noted that the shortage of chips had changed the relationship between OEM’s and chip makers. While previously OEM’s didn’t work directly with the chip makers, they now do. And with the increase in smart vehicles, SAIC is trying to increase its supply chain.