The auto industry has suffered the most stalls in production from the current semiconductor shortages and there are few signs of an early solution to its problems.
As Kathrin Hille in Taipei explains, while tech companies were making efforts to build up their inventories towards the end of last year, carmakers were still cutting orders until November.
“The carmakers operate on a just-in-time model which disincentivises inventory. That is the opposite of the close and carefully managed relationships between fabless chipmakers and foundries,” said an executive at a Taiwanese contract chipmaker.
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