Daimler CEO says chip shortage crisis can continue into 2023

The increasing demand for semiconductor chips shows the auto industry could struggle to source enough of the chips throughout next year and into 2023, though the shortage should be less critical by that time, Daimler AG’s CEO said on Sunday.

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.

“Several chip suppliers have been referring to structural issues with demand,” Ola Källenius informed reporters during a roundtable event ahead of the Munich IAA car show. “This could influence 2022 and (the situation) may be more relaxed in 2023.”

The IAA show is the first major auto industry event worldwide since the beginning of COVID-19 pandemic crisis.

Källenius said on Sunday that regardless of the ongoing chip shortage, the German automaker hopes its own supply of semiconductors will enhance in the fourth quarter.

As part of its preparations to electrify its model range, Mercedes-Benz will show off several wholly electric vehicles at the show in Munich.