Europe’s largest semiconductor company, Infineon, has warned that car companies need “a different model” for procuring critical chips, after supply constraints brought assembly lines around the world to a sudden halt.
“The auto industry cannot say: ‘OK fine, we don’t need [any more chips], and then come back later and say: ‘Now we need them’,” chief executive Reinhard Ploss told the Financial Times.
“They have to consider the long lead times [in the semiconductor sector] of about half a year,” added Ploss, whose company is one of the world’s leading suppliers of microcontrollers and sensors that power modern vehicles.
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