BMW expects chip supply to remain tight for another 6-12 months

BMW expects supply chains to remain tight even till next year, CEO Oliver Zipse said on Monday, eliminating hopes that the ongoing crisis of chip shortage will end soon.

“I expect that the general tightness of the supply chains will continue in the next 6 to 12 months,” Zipse said at the IAA Munich car show.

Zipse said he saw no issues in the long-term, adding that the automotive industry was an important client for chipmakers.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.