French carmaker Stellantis says semiconductor supply to stay tight

Fiat's carmaker Stellantis said today that the supply of critical semiconductors is expected to remain tight until the end of next year.

Carlos Tavaresn said in a statement to the French newspaper Le Parisien: "The situation will remain very complicated until the end of 2023, then will relax a bit."

Semiconductor manufacturers have an interest in making business with us again because they are raising prices. Semiconductors, or computer chips, are used in most of today s technology.

The computer chip supply chain has been weighed down by the recent spate of pandemic restrictions paired with a boom in consumer electronics demand.

Several automotive companies were forced to dial back their production forecasts last year because of the shortage of computer chips.

Car companies have to bear the cost of scrapping production for millions of cars because shortages are easing.