Beijing intervenes to ease chip shortage, prevent disruptions in domestic car production
- China is bearing the brunt of shortage in auto industry as the nation imports 90 per cent of chip parts, makes one in every three cars worldwide
- Handbook lists 568 products from 59 semiconductor producers, and 1,000 sought-after items by carmakers, state-run television reports
The car industry, which makes one in every three cars in the world, is bearing the brunt of a global shortage as the nation relies on imports for over 90 per cent of its semiconductor parts, according to government data. Vehicle output fell 15.9 per cent in January to 2.4 million units from a month earlier, according to the China Association of Automobile Manufacturers.
The Ministry of Industry and Information Technology has intervened to help bridge demand and supply in chips to reduce disruptions, China Central Television (CCTV) said on Friday. A special meeting was held by the ministry to help carmakers identify sources of supply, according to the broadcast.
The ministry has compiled a handbook containing 568 products from 59 semiconductor companies for major vehicle chips including computing, control and communications parts, and 1,000 pieces of product demand information sought by carmakers, CCTV said.
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China will promote the improvement of car chip manufacturing at home following the shortage problem, according to the CCTV report, citing Qiao Yueshan, an official at the Chinese ministry.