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Chipmakers warn AI demand is creating bottlenecks in automotive supply chain
Nexperia says surging demand for AI data centres and robotics is drawing manufacturing capacity away from the mature semiconductors used in cars and industrial equipment. The resulting shortages are adding pressure to automotive supply chains and show how the AI investment boom can constrain other parts of the chip industry.
Interim chief executive Stefan Tilger said Nexperia is “totally oversubscribed”, while STMicroelectronics chief Jean-Marc Chery also reported bottlenecks at foundries and packaging firms. Manufacturers are favouring higher-margin AI-related products, after years of limited investment in mature technologies such as those used for diodes and transistors. Chery said ST’s own factories and investment provide some protection.
In short
- AI demand is diverting chip capacity from automotive suppliers.
- Nexperia says it is totally oversubscribed.
- Chipmakers cite bottlenecks in mature components and packaging.
Explained simply
Semiconductors are tiny components that control or direct electricity in electronic equipment. Cars and industrial machinery rely on many types, including mature chips such as diodes and transistors; these are made using established processes rather than the newest technology.
Nexperia and STMicroelectronics make chips used in vehicles and industry. Their executives say factories and packaging firms are under pressure as investment in AI data centres and robotics increases demand for other chips, which can offer manufacturers higher returns.
Chip production capacity takes time and investment to expand, so shifts in what factories prioritise can affect supplies elsewhere. If mature chips become harder to obtain, carmakers and industrial firms may face delays or higher costs.