Machine production in Russia is under threat

In Russia, the production of machines is under threat due to the worldwide shortage of microcircuits, the Kommersant newspaper reports. So far, domestic factories have not reduced production, covering the lack of components from stock.

The shortage affected those microcircuits that are necessary for ERA-GLONASS systems, tachographs, instrument control panels, engine control units, body electronics, multimedia systems and others.

Referring to market participants, the publication explains that the deficit is due to the fact that in the spring of 2020, amid a pandemic, carmakers reduced orders, and now the industry was simply not ready for a sharp recovery in volumes. Moreover, the problems can drag on for at least six months, and without modules with chips, cars will not be able to enter the Russian market.

The difficulties have already been reported in Santel Navigation, which supplies ERA-GLONASS devices to the JV Daimler and KamAZ, Ford Otosan, Isuzu, Chery, Belji and other automakers.

As the general director of NPP ITELMA Evgeny Gorelik said, the production of microcircuits takes on average six months. First, silicon crystals are grown, and, given the specifics of their creation, this is done infrequently, but in large batches. Some of the crystals are then installed in the cases, and the rest lies in warehouses. “Now chip manufacturers do not have crystals in their warehouses,” Gorelik said.

According to IHS Markit estimates, due to a lack of semiconductors in the first quarter, production of about a million cars worldwide will be delayed, and it will not be possible to fully satisfy the demand of the automotive industry for chips until the second half of 2021.

/Media reports.