Installation of on-board units of OBU for Electronic Road Pricing

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Installation of on-board units of OBU for Electronic Road Pricing

The installation of on-board units of OBU for the new Electronic Road Pricing ERP system has been delayed due to the shortage of microchips, according to the Land Transport Authority LTA on Wednesday. The new units were originally scheduled to be installed in vehicles starting from the end of 2020. It was postponed to the end of 2021 after the COVID 19 epidemic affected global supply chains. It will begin in the second half of 2023.

The new units will be used when Singapore switches to the next-generation ERP system that supports Global Navigation Satellite System technology.

The new ERP system will charge motorists based on the distance they travel instead of the current gantry-based system, which is more than 20 years old.

The COVID 19 pandemic has boosted global demand for microchips, while the suspension of operations in major semiconductor foundries across multiple countries, said LTA, in a joint press release with NCS and Mitsubishi Heavy Industries Asia Pacific, which are developing the new ERP system.

The production of electronic devices has been impacted by this, from consumer electronics to automotive and industrial machines. The production of vehicle on-board units has been affected, said LTA. Parts from different suppliers have indicated that they have not met the required delivery schedules for critical components, and they have indicated that they have been unable to meet the required delivery schedules.

The agency said that the microchip shortage is expected to continue through next year, and production is expected to recover gradually between the end of 2022 and mid- 2023.

The priority is to make sure that OBU installation exercises when it starts progress smoothly for motorists, so we don't want to start and stop, said LTA CEO Ng Lang.

We decided not to rush but to wait a bit for the global chip supply situation to stabilise, and we will probably not start the OBU installation process until the second half of 2023.