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China’s Car-Chip Shortage Could Persist for as Long as a Decade

  • Nation imports the vast majority of chips used in autos, EVs
  • Chinese firms lack the technical knowhow regarding chipmaking
CHINA-CHANGCHUN-FAW-SALES-GROWTH (CN)

Photographer: Xinhua News Agency/Getty Images

China’s automotive-chip shortage could persist for as long as a decade, but it has little to do with the current supply glitches snarling production, according to the official who oversees the nation’s key new energy vehicle technology development platform.

Short-term factors like mistakes in ordering due to incorrect forecasts and factory disruptions because of Covid-19 will resolve naturally, Yuan Chengyin, general manager of the National New Energy Vehicle Technology Innovation Center, said. Rather, China’s rising demand for electric cars, its lack of domestic technical knowhow and sustained geopolitical tensions will emerge as much more serious issues.