Auto industry giant announces price rises, as silicon chips remain in short supply (2021/10/05)
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  • 英文 English 
    Auto industry giant announces price rises, as silicon chips remain in short supply (2021/10/05)

    With the price of silicon chips still rising, a major car manufacturer has announced its new cars will go up in price at the end of this year. Although the extent of the price rise is yet unclear, economists say the move could trigger a wave of price rises across the auto industry.

    One of the biggest hitters in the auto industry has just launched its first 100% electric car. And an equally shocking announcement has come out hot on its heels: all its new cars will get pricier at the end of this year.

    Liu Sung-shan
    Auto industry
    Because materials are rising in price – copper, various precious metals and microchips, and even some plasticized equipment, among other things. We use all these materials in assemblage in the auto industry, and they’ve all announced price rises. But because the materials used by each different model are different, the margin of increase for each model hasn’t been decided yet. We may make an announcement before the end of the year.

    The decision may spur other brands to take action too. Observers expect a wave of price rises to follow. The auto industry is dealing with continually rising costs in materials, logistics and labor. Microchips from major chip makers like TSMC, UMC, VIS and Powerchip are getting more expensive, and semiconductors for chips and detection devices represent 35% of the manufacturing costs of a car. With demand outstripping supply, experts say price hikes were inevitable.

    Darson Chiu
    TIER researcher
    We can compare the main countries’ producer price index to the consumer price index, and see that right now the PPI is vastly higher than the CPI across the board. That means producers will have to continue to tolerate profits being squeezed, or even losses, until they can’t bear the losses any more, and then they’ll have no choice but to pass those price rises onto consumers.

    Vehicles’ microchips are in short supply and new cars can’t keep up with demand. For the most popular models, there’s a waiting list of two or more months. The auto industry could be in for a bumpy ride.
    中文 Chinese  
    全球晶片荒! 汽車大廠宣布年底調漲車價






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