Can the German chip industry catch up to Asia and the US?

One month to go until general elections in Germany, and in our series about future topics that need to be addressed now, let’s talk chips.

Toyota’s throttling back production – Volkswagen’s maintaining short-time work and even BMW can’t produce as many cars as it wants. Without computer chips, many sectors are even grinding to a halt. Intel says the chip supply bottleneck won’t ease for another 2 years.

And all the while demand is surging – driven by a newly emerged home workforce desperate for computers. But the coronavirus has disrupted supply chains and order management.

Most microchips come from Asia and the US. Looking at sales by the 15 top producers, over half are made by US companies, over 43 percent in Asia, and European companies account for a mere 6 percent.

That number is to grow – particularly in light of the current challenges. For that to happen production facilities and trained staff need to be increased.