Auto supplier Bosch expects global semiconductor bottlenecks to continue into 2023

Europe’s largest auto supplier, Bosch, recently said the global bottleneck of semiconductor chips could last through 2023. The low supply of auto chips and raw materials has forced almost all car manufacturers to decrease their production of new vehicles, significantly reducing the allocation for franchise dealers across the country.

Bosch does not share the same sentiments as all car manufacturers, in any case. Mercedes-Benz‌ is convinced that the chip shortage will continue until at least the middle of 2023. Some automakers are noticing trends that might indicate the end of the chip shortage. Because of events like the Russia and Ukraine war and China’s recent COVID-19 lockdowns, there is less demand for vehicles.

Berenberg Bank also published a report in early July stating they expect the labor shortages to dwindle by the end of 2022, which could lead to expanding vehicle markets and new vehicle deliveries as early as the beginning of 2023. However, another expert, AlixPartners, does not believe that the vehicle production industry will get better until way after 2024 because of how backed-up car manufacturers are compared to their new vehicle orders.

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