Infineon CEO says carmakers need to update supply chain

Tuesday, 02. March 2021 13:37

The auto industry needs to modify its approach to microchip purchases in order to avoid future shortages, head of Infineon Technologies AG Reinhard Ploss said on Tuesday.

The executive asserted that carmakers should consider maintaining larger hardware stockpiles, arguing they cannot expect companies like Infineon to "take all the risk of holding the inventory" due to the "just-in-time" chip delivery model. "That would be an unbelievably high cash flow risk for us," Ploss told the Financial Times.

His comments come amid a global shortage of microchips, which is expected to last at least until the second half of the year and result in approximately one million fewer cars being produced in 2021.

Related Links: Infineon Technologies AG
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