Volkswagen may claim damages over chip shortages

Volkswagen may claim damages over chip shortages

Business news |
By Peter Clarke

Tier one suppliers such as Bosch and Continental could be in the firing line to get sued but they don’t make the ICs that are in short supply. They depend in turn on chip suppliers including foundries in Taiwan.

When industrial and automotive sectors slowed down in 2020 because of stay-at-home restrictions due to the coronavirus pandemic, some semiconductor manufacturers switched manufacturing capacity to supplying datacenter and consumer sectors. As a result automotive customers are finding it difficult to turn supply chains back on.

In December 2020 Volkswagen was the first company to call out that it faced “massively restricted” supplies of semiconductors. Since then almost all the world’s major car makers have been forced to slow down production lines and even close plants because they cannot get all the chips they need.

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