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Volkswagen signs supply deals directly with chip makers to address global chip shortage

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Update time : 2023-08-24 14:57:07
        German automaker Volkswagen said Wednesday it has begun buying chips directly from 10 chip makers, including NXP Semiconductors, Infineon Technologies and Renesas Electronics, for its strategy. critical chips.
 
 
        Volkswagen said it had relied on component suppliers to source chips in the past, but since October it has signed supply agreements directly with chip makers to ensure its supply security. "There is not enough capacity in the global market and we have to act," said Dirk Grosse-Loehead, head of procurement for Volkswagen's passenger car brand.
        Demand for chips in the automotive industry has risen sharply as production of electric vehicles and demand for increasingly complex software has increased, while construction of chip factories has lagged supply due to complexity. Last July, Volkswagen and Franco-Italian chipmaker STMicroelectronics announced a partnership to develop a new type of semiconductor, Volkswagen's first direct relationship with Tier 2 and Tier 3 semiconductor suppliers.
        The Berlin government has also been wooing the world's largest contract chipmakers with billions of euros in subsidies. This year, both Intel and TSMC announced plans to build plants in Germany. Volkswagen does not have a direct supply relationship with TSMC, the world's largest contract chipmaker, but meets with TSMC every few weeks to communicate its needs. Volkswagen also plans to reduce the types of chips needed in its cars to simplify the supply chain, which will also help simplify its software offerings.

 
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