The shortage of chips for the automotive industry

For Gu Huinan, September was bittersweet. As the head of the electric vehicle (EV) brand under one of China's largest automakers. He was delighted to see his monthly sales skyrocket to new heights. which is an increase of 124% year-on-year.But of nearly 20,000 orders for GAC Aion's new energy vehicles last month,

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With only 13,000 deliveries to customers, the chip shortage has left the company struggling to fulfill orders on time. Like other companies The impact was severe. We only have 60 or 70 percent of the chips we need. It puts our production in limbo. We are not even sure if next week's chips will arrive or not,” Gu said.

The biggest shortage is in the car's main control unit. Because they are designed to a much higher safety standard. They have to work from minus 40 degrees to more than 100 degrees Celsius.Holding on to the specialty chips is why Gu thinks the company will lose 30% of its revenue this year.

BYD, a Chinese manufacturer of electric vehicles and batteries which is the highest-selling EV brand in the country for 5 consecutive months was also affected by the crisis. The Shenzhen-based company posted a 30 percent drop in first-half net profit as chip and lithium shortages increased costs.