Chipmakers warn AI demand is creating bottlenecks in automotive supply chain

Advertisement Business Chipmakers warn AI demand is creating bottlenecks in automotive supply chain 10 Nov 2026 09:42PM (Updated: 10 Nov 2026 09:45PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a new cards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST MUNICH, Nov 10 : Dutch chipmaker Nexperia is "totally oversubscribed" as suppliers divert manufacturing capacity toward fast-growing AI data centres and away from the mature chips used in cars and industrial equipment, interim CEO Stefan Tilger told Reuters at the Electronica trade fair in Munich on Tuesday. Tilger said some competitors had shifted capacity away from the commodity semiconductors supplied by Nexperia, creating bottlenecks in parts of the automotive supply chain. "The automotive industry is suffering at the moment quite heavily," he said in an interview. STMicroelectronics CEO Jean-Marc Chery warned on Monday that foundries and chip-packaging companies were increasingly shifting resources away from products used in automotive and industrial applications. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less "We see many bottlenecks," Chery said at a CEO panel ahead of the conference on Monday. The comments add to evidence that the AI investment boom is creating bottlenecks elsewhere in the semiconductor supply chain, as manufacturers prioritise higher-margin products linked to data centres and artificial intelligence. Some foundries and assembly and packaging firms that previously served a broad range of customers "are disengaging ... from mainstream technology", he said. Tilger said demand from AI data centres and robotics was absorbing capacity, while investment in the mature technologies used for diodes, transistors and other basic components had lagged for years. Nexperia specialises in high-volume, low-cost semiconductors used primarily in vehicles and industrial equipment. Unlike larger rivals such as STMicroelectronics, it has a narrower product range focused on mature-node components. Chery said ST's own manufacturing footprint offered some protection from supply constraints. "We control a part of our future with our CapEx and our manufacturing," he said. Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. Sign up for our newsletters Get our pick of top stories and thought-provoking articles in your inbox Subscribe here Get the CNA app Stay updated with notifications for breaking news and our best stories Download here Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Join here Advertisement Also worth reading Content is loading... Advertisement Expand to read the full story Get bite-sized news via a new cards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST