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Chinese automakers complained of chip costs rising more than 100-fold

Chinese automakers complained of chip costs rising more than 100-fold

As the global chip shortage continues to persist, it is also affecting car production in China.
Local automakers are seeing multiple times the cost of semiconductors.Image source: XPengIn a recent speech, XPeng CEO He Xiaopeng complained that the cost of chips has increased by more than 100 times due to likely price manipulation.
According to Digitimes, the information was confirmed by Richard Yu, head of Huawei Consumer Business Group and Intelligent Automotive Solution BU.
According to his words in automobile industry the chips earlier costing about $1.5-2.99 have grown in price up to about $375.According to AFS analysts, only in May 1.69 million fewer cars were produced in the world because of chip deficit.
Because of the imbalance of supply and demand, some vendors are attempting to manipulate prices.
In particular, Bosch is rumored to be negotiating a price hike for car chips, and industry experts warn that other industry players may follow suit.As prices for minerals used in traction batteries also continue to rise, some Chinese automakers have already raised prices for their cars in 2022.
At the same time, WM Motor head Freeman Shen (Freeman Shen) said that car chip prices have also risen and now the cost of car semiconductors exceeds the cost of traction batteries.Although vehicle production in China has slowed due to the COVID-19 outbreak, demand for car chips should remain high in the medium to long term.
As a result, the world's leading semiconductor manufacturers are planning to expand their capacity.
For example, Infineon has declared its intention to invest in numerous large projects of the corresponding orientation.Meanwhile, China is trying to ensure its independence from chip supplies, but many experts believe that the country has yet to obtain in one way or another some key technologies for their production.
As the world's largest car market, China is particularly short of the semiconductors needed to produce cars.
Nevertheless, 95% of the total volume of relevant products come from abroad.
So far, according to experts, the country has no companies capable of offering products with stable characteristics, so the Celestial Empire still continues to rely on imported components.

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