Daimler Truck CEO says he’s more concerned about chips than Covid

A Mercedes-Benz tremendous lorry leaves the Daimler manufacturing facility in Sindelfingen, Germany, 08 December 2015.

Daniel Maurer | Getty Photographs

Daimler Truck CEO Martin Daum unveiled Friday that he is far more worried about the world-wide semiconductor scarcity than he is about the economic effects of the coronavirus pandemic.

“I am a lot more involved about semiconductors than Covid at the instant,” Daum informed CNBC’s “Avenue Indications Europe.” “Trucks are required to hold our system alive, even in the depth of the crisis.”

Daum reported he doesn’t see Covid as a key threat to Daimler Truck at the second. “The threats are the provide circumstance, in particular on the semiconductor facet,” he stated.

The govt explained that truck companies usually “estimate the current market” and then established targets for market share. “Then you have a experience for what your output quota is,” Daum claimed.

“These days, you phone your semiconductor suppliers, request how many you can get and that’s essentially your generation system mainly because you know just about every one truck you establish will provide.”

Automotive chipmaker Infineon is battling to meet up with desire for its semiconductors, in accordance to the firm’s CEO, Reinhard Ploss. “The automotive, but also other verticals, are incredibly tight currently on offer,” Ploss told CNBC’s “Squawk Box Europe” on Wednesday.

“We are significantly absent from matching the demand from customers,” he mentioned, incorporating that desire is continuously expanding since there is certainly a backlog setting up up. “The challenges are soaring and piling up more than time.”

Infineon opened a new 1.6 billion euro ($1.8 billion) semiconductor factory in Villach, Austria, in September as aspect of an effort to satisfy demand from customers for its goods. It explained chips from the plant will principally be employed to meet demand from customers from the automotive marketplace, details centers and renewable electricity generation of photo voltaic and wind power.

Analysts have claimed that the move towards electric autos isn’t aiding the semiconductor scarcity as they can demand up to 10 periods as several chips as common autos.

But electric powered autos getting manufactured by Daimler Truck do not have to have “appreciably larger” figures of semiconductors in comparison to inside combustion motor equivalents, Daum reported.

“I would say it’s considerably less than 10% so which is not the decisive stage,” he mentioned.