MUNICH / LONDON (IT BOLTWISE) – The increasing chip shortage in German industry could significantly impact economic growth. According to the Munich Ifo Institute, more and more manufacturers are complaining about material shortages, especially for electronic and optical products. This development could worsen further and put a strain on the entire economy.
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The chip shortage in German industry continues to increase and could significantly impact economic growth. The Munich Ifo Institute warns that material shortages among manufacturers of electronic and optical products rose to 10.4 percent in October, compared to 3.8 percent in April. This development is exacerbated by trade restrictions and control mechanisms for rare earths, which affect the availability of semiconductors.
Manufacturers of electrical equipment are particularly affected, with 10 percent complaining about delivery bottlenecks. Across German industry, 5.5 percent of companies report a lack of materials, which corresponds to the average in the pre-Corona years. The auto industry appears to be less affected at the moment, although there are reports of possible production losses at Volkswagen due to supply problems at semiconductor producer Nexperia.
However, the current shortage is far from the highs of the last chip crisis in December 2021, when 81.9 percent of companies reported material shortages. However, the situation remains tense and the impact on economic growth could be significant if the situation continues to deteriorate. Experts emphasize the need to develop alternative supply chains and reduce dependence on rare earths.
German industry is faced with the challenge of adapting its production processes and developing new strategies to secure material supplies. This could also provide opportunities for innovation and investment in new technologies to reduce dependence on imported semiconductors. In the long term, this could lead to greater diversification of supply chains and increased resilience of the German economy.
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