Chip makers have a message for car makers: Your turn to pay
Automakers are abandoning lean practices to hedge against chip availabilityThe shortages of computer chips that forced global automakers to scrap production plans for millions of cars over the past two years are easing - at a new and permanent cost to the car companies. are becoming embedded features of vehicle development, say executives in both industries. That has shifted the risks and some of the costs to automakers.
For chip makers, the still-developing partnership with automakers is a welcome - and overdue reset. Many semiconductor executives point the finger at automakers’ lack of understanding of how the chip supply chain works – and an unwillingness to share cost and risk - for a large part of the recent crisis.
“You can't have one element of the industry carry the water for the rest of the industry,” he told Reuters. “We will not put capacity on unless that customer is committed to it, and they have a state of ownership in that capacity.” Michael Hurlston, the CEO of Synaptics Inc, whose chips drive touch screens, which had held up some auto production, said the recent, more direct collaboration with automakers could create new business opportunities as well as managing risks.
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