BASF to bolster European chip supply with ammonium hydroxide plant BASF is contributing to a stronger supply chain for semiconductors in Europe by building an electronic grade ammonium hydroxide plant in Ludwigshafen, Germany. Marcus Williams
China lifts export ban following Trump-Xi meeting, allowing flow of Nexperia chips to resume China has reversed export restrictions on critical automotive semiconductors following a meeting between Donald Trump and Xi Jinping, though European manufacturers remain cautious about the speed and scope of the resumption. Ilkhan Ozsevim James McLoughlin
China to ensure Nexperia chip trade resumes, White House says With the ongoing dispute between chipmaker Nexperia’s Dutch leadership and its operations in China yet to be resolved, a White House fact sheet has confirmed that China is working to resume the flow of Nexperia semiconductors to the rest of the world. James McLoughlin
Volvo Cars, VW and more warn about Nexperia chip shortage Volvo Cars and VW have warned that the ongoing shortage in supply of Nexperia semiconductors could affect production. Megan Kelly James McLoughlin
Disarray at semiconductor manufacturer Nexperia prompts supply chain concerns After the Dutch government seized chipmaker Nexperia, disorder within the company has prompted concerns over semiconductor supply and the impact on automakers. Ilkhan Ozsevim James McLoughlin
Time:matters expands emergency courier services in Mexico Emergency logistics provider time:matters has expanded its global courier network with the addition of two terminals in Mexico, tailored to demand from the automotive, semiconductor and high-tech industries, amongst others. Marcus Williams
Wolfspeed appoints Bret Zahn to develop automotive products Wolfspeed has appointed Bret Zahn as vice-president and general manager of its automotive division. Marcus Williams
Panjit International secures chip line in Philippines to meet auto demand Amid shifting trade dynamics and escalating EV semiconductor demand, the new partnership enhances Panjit's global supply strategy with added capacity and regional diversification. Marcus Williams
Continental to make its own chips with GlobalFoundries The tier one supplier has established a business unit called Advanced Electronics and Semiconductor Solutions and will be making the components in Europe and Asia. Marcus Williams
US hikes import tariffs on EVs, batteries and critical materials The US government is increasing import duties on electric vehicles (EVs) by more than 100% with an eye on controlling imports from China. There are also tariff increases on lithium batteries, semiconductors, critical minerals, and steel and aluminium, among other products, to be phased in over the next two years as part of the review of Section 301 of the US Trade Act of 1974. The measures will affect $18 billion-worth of imports from China. Marcus Williams
UK outlines strategy to protect supply of critical materials The UK government’s Department for Business and Trade has launched a Critical Imports and Supply Chains Strategy to safeguard the supply of goods including minerals and semiconductors, seen as essential for the future of the country’s domestic automotive industry. It also includes measures to protect other manufacturing sectors as well as pharmaceutical supplies. Marcus Williams
Red Sofa Interview: Infineon’s Birgit Fuchs on the digital tools being used for semiconductor capacity planning Infineon’s vice-president of supply chain automotive, Dr Birgit Fuchs, talks about the role digital technology is playing to help Infineon manage semiconductor supply and mitigate the sort of inbound disruption the automotive industry has seen in recent years.
North American ports review: Co-operation helps calm the waters While vehicle volumes through North America’s gateway ports were sporadic in 2022, terminal operators have been working with port authorities to manage flows while investing for the return of stable volumes with more sustainable infrastructure. Marcus Williams
ZF secures device and chip supply with STMicroelectrics and Wolfspeed ZF has secured a contract with STMicroelectrics for the guaranteed supply of silicon carbide devices in the “double-digit millions” beginning in 2025. Marcus Williams
US vehicle inventory highest in two years US vehicle inventory increased in March to 1.89m, equal to a 56-day supply, according to research compiled by Cox Automotive and the Automotive News Research & Data Center. Marcus Williams
Carmakers and tier ones need better supply chain alignment If the semiconductor shortage taught the automotive sector anything, it is that closer collaboration between carmakers and their suppliers, not just at the tier one level, is crucial to mitigate disruption to the supply chain. Marcus Williams
Audi’s ambitious strategy for a cleaner future The automotive industry continues to fight supply chain disruption on a number of fronts, from the ongoing shortage of electronic parts, the war in Ukraine, high inflation, and a critical shortage of transport capacity and labour. The impact of these factors is estimated by analysts S&P Global to account for a 50m shortfall in vehicle deliveries between January 2021 and February 2023 (with 19m accounted for by the semiconductor shortage). Marcus Williams
The end-to-end in sight at Volvo Cars Volvo Cars is on a mission to make its supply chain as sustainable as its electric vehicles, so it has combined procurement and supply chain logistics for greater clarity on the flow of parts, materials and vehicles. Kerstin Enochsson, head of procurement and supply chain, explains more Marcus Williams
GM calls in the chips with GlobalFoundries GM and GlobalFoundries have done a deal that secures semiconductor supply after more than two years of disruption. Kamal Khouri, vice-president and general manager for automotive at GlobalFoundries talks about the benefits of a more transparent supply chain Marcus Williams
VW Group forecasts increase in deliveries as logistics problems ease VW Group expects vehicle deliveries to rise to around 9.5m units in 2023 and sales revenue to increase by between 10-15% compared to 2022. Marcus Williams
GM secures dedicated supply of semiconductors from GlobalFoundries GM has signed a long-term agreement for the supply of semiconductors from GlobalFoundries. The carmaker said the agreement would establish “a dedicated capacity corridor exclusively for [its] chip supply”. Marcus Williams
Improved chip supply helps JLR return to profit Jaguar Land Rover (JLR) has reported an improvement in the supply of semiconductors chips helped it return to profitability in the third quarter. Marcus Williams
Jaguar Land Rover adjusts assembly mix to manage chip shortage Jaguar Land Rover is cutting production of certain products at its Halewood and Solihull plants in UK between January and March next year because of the ongoing shortage of semiconductors, which is affecting carmakers globally. Marcus Williams
Jaguar Land Rover chooses Wolfspeed for semiconductor supply Jaguar Land Rover (JLR) has contracted electronic subcomponents supplier Wolfspeed to supply semiconductors for the inverters used in its forthcoming electric vehicles (EVs). Inverters manage the transfer of power from the battery to the electric motor. Hazel Southwell
Persistent parts shortages mean delay in vehicle deliveries for VW Volkswagen Group has increased sales in the first three quarters of 2022 and doubled its operating result (before special items) compared to the same period last year. However, deliveries were down -12.1% because of a “persistent shortage of parts”, including semiconductors and wire harnesses. Marcus Williams
Heavy rains hit Toyota production in Japan Vehicle output at Toyota’s plants around the Aichi Prefecture in Japan has been suspended because of flood damage caused by heavy rains in the area. However, the carmaker said it will reroute the semiconductors destined for those plants to others in Japan affected by the ongoing shortage in supply. Marcus Williams
UK car output falls in H1 but EVs offer promise Parts shortages and supply chain disruption are to blame for poor vehicle manufacturing results in the UK for the first half of 2022. At the same time, however, the production of battery electric vehicles (BEVs) has increased to a record level, supported by investment in UK manufacturing worth £3.4 billion ($4.1 billion) between January and June. Marcus Williams
Bosch to invest €3 billion to increase semiconductor supply The EU and German government will part-fund the expansion of the semiconductor manufacturing which the bloc has identified as an area of strategic importance. Peter Murphy
Collaboration at Newark keeps inbound parts flowing Vehicle terminal operator FAPS is working with the Port Authority of New York and New Jersey (PANYNJ) to unload crated automotive parts from ro-ro vessels that are also delivering vehicles to Newark port. Marcus Williams
Mercedes hampered by Q2 parts shortages Supply chain disruption has hampered sales for Mercedes-Benz in the second quarter of this year, according to the carmaker’s most recent figures. Marcus Williams
Nissan opts for Agillence TMS to manage parts logistics Nissan North America is now managing its inbound and service parts deliveries with a transport management system (TMS) supplied by optimisation technology provider Agillence. Marcus Williams
Jumping the chip queue The ongoing shortage in the supply of semiconductors to the automotive industry has laid bare a disconnection between the automotive and semiconductor supply chains. What is needed to avoid future risk is greater coordination and transparency between the two sectors. Stuart Todd
Car industry looks for more vertical integration to avoid risk Carmakers and their suppliers have had two years full of volatility, uncertainty, complexity and ambiguity (Vuca) and are actively looking for new strategies to mitigate risk in the supply chain secure future production. Namrita Chow
Watch: Lessons from a crisis – designing smarter automotive semiconductor and material supply chains Leaders from SEMI Europe and CNW explore how OEMs, chipmakers and logistics providers are working together to mitigate semiconductor shortages.
Rising fuel price a primary concern for outbound sector The rising price of fuel is one of the biggest concerns for both users and providers of finished vehicle logistics services, according to the findings of a new quarterly survey carried out by logistics provider RPM and Automotive Logistics. Marcus Williams
Carmakers call for transparency in chip supply The shortage of semiconductors has hit the automotive industry hard. As cars become more sophisticated, there is hardly any part of the vehicle, or the way that it is made, that does not rely on a microchip. Securing the supply of those chips has, therefore, become a key driver of operations. Jason Dunn
Speed and standards are key to the automotive future Things are changing fast in the automotive industry. The Covid pandemic set off a chain of disruptive events that forced many into crisis management they are still living. There have been more changes in the last two years than there probably have been in the previous 20. Marcus Williams
Toyota’s tried and tested approach to disruption Supply chain disruption has been in the headlines for a couple of years now. There seems to be a different problem on a daily basis and they seem to be come from all points of the compass. Brexit disruption, Covid lockdowns, parts and labour shortages, war or extreme weather events, as seen in the recent floods in South Africa, have come one after the other. Marcus Williams
Wolfspeed opens Mohawk Valley semiconductor fab in US Silicon carbide supplier Wolfspeed has opened a wafer fabrication facility (fab) at Marcy in New York state to support semiconductor production in the US. Marcus Williams
Bosch invests in capacity to tackle semiconductor shortage Bosch is extending its wafer fabrication facility in Reutlingen, Germany to help tackle the global semiconductor shortage. Marcus Williams
Testing TPS resilience when dealing with disruption at Toyota In the face of ongoing supply chain disruption, the Toyota Production System (TPS) is proving itself a reliable tool for building resiliency into the carmaker’s logistics. Automotive Logistics
Russia’s invasion of Ukraine is a long-term risk for the automotive supply chain The impacts stretch beyond inflation and corporate retreats to critical shortages upstream for semiconductor and EV supply. Daniel Harrison
Ukraine invasion causes widespread supply chain disruption Russia’s military invasion of Ukraine has already had widespread repercussions across Europe’s automotive supply chain and supporting multimodal logistics network. Marcus Williams
A visible improvement at Nissan At the most recent Finished Vehicle Logistics North America in California, leaders from Nissan North America discussed the processes and technology they were putting in place to make vehicle delivery a lot more accurate. Marcus Williams reports Marcus Williams
Low vehicle inventory makes outbound visibility more important than ever The record-low inventory at US dealerships caused by production shortfalls as a consequence of the semiconductor shortage has refocused the importance of outbound visibility tools to the dealership network, according to speakers at last week’s Finished Vehicle Logistics North America conference, held in California. Marcus Williams
Auto industry looks for clearer picture of complex chip shortage As industrial supply chains have become more volatile during and since the Covid pandemic, so they have become a more mainstream topic of discussion. The supply of semiconductors is a headline story because of continued disruption in the supply of a universal components, something that is causing headaches across a range of industries, not least automotive. Jason Dunn
Outbound sector grapples with reality of reaching carbon neutrality The demand is clear: a carbon neutral Europe by 2050. However, the complexities in achieving this target are myriad, especially for the vehicle logistics industry. Namrita Chow
Further cutbacks to Toyota’s global output but recovery is in sight Toyota is once again scaling back production next month amid ongoing pandemic and microchip shortage problems. Jason Dunn
On the sidelines ALSC Global Day 1 in review: logistics data, mitigating shortages and managing the chip crisis Christopher Ludwig recounts highlights of the first day of Automotive Logistics and Supply Chain Global Live, picking out highlights and learnings from OEM, tier supplier and logistics providers at the event.
On the sidelines ALSC Global end of conference wrap up: this is only the beginning Christopher Ludwig recounts highlights from Day 2 of Automotive Logistics and Supply Chain Global Live, including key objectives in data management and potential increases in localisation
Rethinking the semiconductor supply chain Executives from Nissan North America, electronics supplier Johnson Electric and semiconductor association SEMI Americas discuss the longer-term strategies required to make the automotive semiconductor supply chain more stable and secure.
North American tier ones tackle a troublesome year The automotive supply chain in North America is having a worse year than it did in Covid-stricken 2020. For the tier one suppliers based there, it is an ongoing fight to deliver parts in the face of widespread supply chain disruption. Marcus Williams
Wolfspeed ahead for GM’s Ultium Drive supply GM has signed supplier agreement with US electronic subcomponents supplier Wolfspeed (formerly Cree) to secure the supply of silicon carbide devices that the carmaker said will enable it to install more efficient propulsion systems for its electric vehicles (EVs). Marcus Williams
Microchip shortage threatens finished vehicle carriers, warns ECG The Association of European Vehicle Logistics (ECG) has warned that the “very existence” of finished vehicle carriers is threatened by the ongoing global microchip shortage. Jason Dunn
Bolt battery fires add to GM’s production problems GM has extended the closure of its Orion assembly plant in Michigan, US, until October 18 because of a battery supply problem. Marcus Williams
Toyota makes further cuts to output because of Covid and chip shortage Supply chain disruption as a result of the ongoing global semiconductor shortage continues as the imbalance between chip production and demand is forecast to maintain into 2022. Marcus Williams
Clarity drives focus in the battery supply chain As the automotive industry embraces electric vehicle production, carmakers are in tough competition with each other, and other industries, for the minerals used to make the lithium-ion batteries driving them. Those carmakers need better visibility of the supply chain if a disruption similar to the semiconductor shortage is to be avoided says Rekha Menon-Varma, co-founder and managing partner at Vertaeon Marcus Williams
Semiconductor shortage disrupts production at Ford and Volvo The ongoing shortage in the supply of semiconductors to the automotive industry means that parts shortages are arresting production for Ford and Volvo this week. Marcus Williams
GM changes strategy in the scramble for secure battery and chip supply General Motors is looking for supplier partnerships and digital tools to secure the localised supply of semiconductors and lithium-ion batteries in North America, currently two of the most critical products needed in vehicle production in the region. Jason Dunn
Covid costs Toyota 40% production loss in September Parts shortages caused by the spread of Covid-19 in South-East Asia, compounded by ongoing semiconductor shortages, have forced Toyota to cut September’s global production by 40%. Marcus Williams
Nissan halts Smyrna production because of chip shortage One of the largest car plants in North America has been forced to temporarily shut down because of disruption to the supply of semiconductors and a renewed coronavirus outbreak in Malaysia. Jason Dunn
GlobalFoundries to double semiconductor capacity in US US-based semiconductor supplier, GlobalFoundries, is to double its manufacturing capacity at its site in Malta, New York state. The company is building a completely new fabrication plant as well as investing $1 billion to boost annual output at its existing Fab 8 facility in Malta by 150,000 wafers per year. Once the new facility is at full capacity the Malta site will have an annual output of 500,000 wafers. Marcus Williams
Data key to collaboration in an era of disruption Carmakers and their logistics providers need to more closely collaborate and share supply chain data to deal with disruption and improve the delivery of vehicles, according to speakers at this year’s Finished Vehicle Logistics North America Live conference. Marcus Williams
Carmakers in North America worst hit by semiconductor shortage North American vehicle production has been the worst affected by the shortage in the supply of semiconductors, including for its high-profit, low-inventory vehicles, according to the latest research from AutoForecast Solutions. It comes at a time of very high demand for vehicles in a market rebounding from the Covid lockdown. The question is, how will leading vehicle makers in the region position themselves so that this does not happen again? Marcus Williams
GM focuses on increasing vehicle deliveries in North America GM has said it is taking steps to increase vehicle deliveries to dealers and customers in the US and Canada to make up for the shortfall in production caused by current semiconductor supply chain disruption and the strong rebound in demand for its products in North America. Marcus Williams
Audi cuts production again because of chip shortage Audi has confirmed that it will be putting 10,000 of its employees working at the Ingolstadt and Neckarsulm assembly plants in Germany on reduced hours in June. A shortage in the supply of semiconductors, which is affecting the automotive industry globally, means Audi is having to cut output at the plants. Marcus Williams
Carmakers meet US secretary of commerce to solve semiconductor shortage US secretary of commerce, Gina Raimondo, has met with senior executives in the semiconductor supply chain, including carmakers Ford, GM and Stellantis, to find ways out of current shortage in the supply of the electronic components. Marcus Williams
Toyota forced to suspend production in Japan in June Toyota has been forced to suspend production next month at two plants in Japan because of a shortage of semiconductors. Marcus Williams
How the European automotive industry aims to build back semiconductor and chip supply OEMs, suppliers and EU officials are considering how best to develop Europe’s semiconductor supply bases to mitigate current and future shortages, but the broad gaps at many levels – including for older, larger chips – mean there will be no magic bullet Namrita Chow
Greater cross-sector dialogue needed to solve chip crisis The current global shortage in the supply of computer chips to the automotive industry is causing significant disruption to production and looks likely to continue into next year. There are signs though that the current crisis could lead to new forms of partnership between the automotive and semiconductor industries, and a move away from the rigid hierarchy of the traditional automotive supply chain. That promises to lead to a more secure relationship for the future. Marcus Williams
Semiconductor shortage hits Volvo Truck manufacturing Volvo Group has said the ongoing shortage of semiconductors to the automotive industry will cause it to halt production at its truck manufacturing operations in the second quarter of this year. Marcus Williams
Chips will require changes to the just-in-time model The bottlenecks for semiconductors have caused delays for many car manufacturers, highlighting how supply chains in the tech industry are not always easily compatible with those in automotive. Fabian Pertschy spoke to Lars Reger, chief technology officer (CTO) at semiconductor maker NXP, about the importance of components in today’s vehicles and what long-term effects the current semiconductor crisis may have Fabian Pertschy
Fire at Renesas plant knocks out semiconductor chip production A fire has stopped production at one of Renesas Electronics’ plants in Japan. Renesas Semiconductor Manufacturing, a subsidiary of the parent company, reported the fire at its Naka factory in Hitachinaka on the earlier hours of March 19. Marcus Williams
