Semiconductor producer Infineon expects scarcity of its core product to be over subsequent 12 months, with the state of affairs bettering in summer season, a high govt mentioned.

“I assume that we will cowl demand nicely in 2023,” the top of Infineon’s automotive unit, Peter Schiefer, informed Car Information Europe sister publication Automobilwoche. “The final points shall be resolved in 2023.” 

To satisfy the rising demand, Germany-based Infineon plans to broaden its manufacturing capacities, together with funding in its 1.6 billion-euro ($1.8 billion) semiconductor plant in Villach, Austria, which was inaugurated final 12 months, he mentioned.

The worldwide chip scarcity hit the auto business arduous final 12 months and halted automobile manufacturing throughout areas. Automakers together with Volkswagen and Stellantis are hoping the supply-chain snarls will step by step ease this 12 months however have warned chip provide will stay tight within the first half.

Toyota has already lower its February output goal, citing the scarcity. The automaker mentioned mentioned the semiconductor scarcity would drive it to cut back worldwide output by 150,000 items in February to about 700,000 automobiles.