The fierce competition for chips in the entire industry has caused automakers to switch back and forth between production cuts and shutdowns this year. Due to the lack of sufficient chips, car sales in Europe fell by 23% last month to the lowest level since 1995. In response, Oliver Zipse, Chairman of the European Automobile Manufacturers Association (ACEA) and CEO of BMW, warned that local automakers must reduce their dependence on Asian chips, otherwise the crisis of plant shutdowns in the entire region will be staged again.

According to the "Financial Times" report, Oliver Zipse said that the auto industry is facing "serious and direct consequences" because it cannot purchase the parts it needs.

Although Intel has announced that it will spend 80 billion euros to build production plants in Europe to increase production capacity, TSMC also plans to set up factories in Europe. However, it often takes several years for a fab to be put into operation, and most of the global chip production has been transferred to low-cost labor areas such as Asia. This puts the European region at risk of supply disruption.

According to a letter written by Oliver Zipse to the European Commission seen by the "Financial Times", he stated that a "European step-by-step initiative" is needed to establish chip factories in the region to compete with Asian manufacturing bases.

Oliver Zipse said in the letter, "This unprecedented crisis reveals how unexpectedly fragile the (Europe) semiconductor supply chain is today, and the urgency for us to minimize our dependence on overseas markets, especially important components in Asia. ."

An executive from a major European car manufacturer said, "We are barely making ends meet. Asian brands are currently performing much better because they have established connections with local suppliers. If there is a localized supply in Europe, it would be really helpful. "In the opinion of ACEA Director General Eric-Mark Huitema, manufacturers will be willing to pay a little more in exchange for sufficient chip supply.