Russian-Ukrainian conflict could further weigh on semiconductor supply shortage

The Frencken Group said the supply shortage will remain a challenge for the automotive industry.

The conflict between Russia and Ukraine has added to the challenges of supplying semiconductor chips for the automotive industry, the Frencken Group said.

Frencken Group Chief Executive Dennis Au said there was no significant change in the supply shortage seen in early 2022, compared to the second half of last year.

In addition to the disruption of the semiconductor supply chain, the Russian-Ukrainian conflict has also led to difficulties in the supply of automotive electrical harnesses, which worsens the impact on the production of car manufacturers, Au said.

While acknowledging that the conflict has affected the world from a macro perspective, he clarified that the conflict has not had a major direct impact on the auto industry so far.

The Group has not experienced any major direct impact from the Russian-Ukrainian war to date, although the automotive industry has experienced supply chain challenges, he said.

However, from a macro perspective, businesses around the world could face cost pressures from rising energy prices, supply chain disruptions and upward pressures. on the prices of raw materials such as aluminium.

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