Chip manufacturers warn of risk of new shortage in auto industry due to AI

Semiconductor manufacturers are warning that the automotive industry may face a new shortage of microchips. According to Tilger, competitors are redirecting the production of mass-market components to chips for artificial intelligence data centers, leading to reduced supplies of mature semiconductors for cars and industrial equipment.

STMicroelectronics CEO Jean-Marc Chery also stated that chip fabrication and assembly plants are increasingly rejecting traditional orders from the automotive and industrial sectors. Tilger added that new types of robots are also putting pressure on the supply chain. According to the company executives, the problem does not stem from graphics processor manufacturers, including Nvidia, taking all available microchips, but rather at earlier stages of production.

The consequences are already being felt by supplier Aumovio, which produces sensors, cameras, and other electronics for BYD, BMW, and Ford vehicles. The company’s acting CFO, Klaus Bauer, warned of rising chip costs, which he said could surge sharply next year. He linked the situation to demand from AI data centers: suppliers can sell twice as much of their capacity to this sector, as it is almost insensitive to price.

During the pandemic, the semiconductor shortage halted production lines and forced automakers to release vehicles without certain electronic features, including automatic start-stop systems. It remains unclear whether the new crisis will reach the same scale.