Daimler Truck CEO Martin Daum revealed Friday that he is extra frightened in regards to the world semiconductor scarcity than he’s in regards to the financial impression of the coronavirus pandemic.

“I am extra involved about semiconductors than Covid in the mean time,” Daum instructed CNBC’s “Avenue Indicators Europe.” “Vans are essential to maintain our system alive, even within the depth of the disaster.”

Daum stated he does not see Covid as a significant danger to Daimler Truck in the mean time. “The dangers are the availability scenario, particularly on the semiconductor aspect,” he stated.

The manager stated that truck producers usually “estimate the market” after which set targets for market share. “Then you’ve gotten a sense for what your manufacturing quota is,” Daum stated.

“As of late, you name your semiconductor suppliers, ask what number of you may get and that is mainly your manufacturing program as a result of you already know each single truck you construct will promote.”

Automotive chipmaker Infineon is struggling to fulfill demand for its semiconductors, in response to the corporate’s CEO, Reinhard Ploss. “The automotive, but additionally different verticals, are very tight at present on provide,” Ploss instructed CNBC’s “Squawk Field Europe” on Wednesday.

“We’re far-off from matching the demand,” he stated, including that demand is consistently growing as a result of there is a backlog build up. “The issues are rising and piling up over time.”

Infineon opened a brand new 1.6 billion euro ($1.8 billion) semiconductor manufacturing unit in Villach, Austria, in September as a part of an effort to fulfill demand for its merchandise. It stated chips from the plant will primarily be used to fulfill demand from the automotive trade, knowledge facilities and renewable power era of photo voltaic and wind energy.

Analysts have stated that the transfer towards electrical autos is not serving to the semiconductor scarcity as they will require as much as 10 occasions as many chips as conventional autos.

However electrical autos being manufactured by Daimler Truck don’t require “considerably increased” numbers of semiconductors in comparison with inside combustion engine equivalents, Daum stated.

“I’d say it is lower than 10% in order that’s not the decisive level,” he stated.