Culprit Of Chip Shortage Found, Automaker Hunting Down Chips

We finally know who’s responsible for shutting down Nissan assembly lines in Japan and the U.S.A. The shortage of a critical computer chip stopped Hitachi from making ECUs, which in turn stopped Nissan from making cars. For days, the identity of the lackadaisical chipmaker had been kept under wraps. Now, the culprit has been unmasked.

It is STMicroelectronic s in Geneva, Switzerland. Yesterday, senior executives from Nissan and Hitachi on visited the offices of STMicroelectronics in Europe “for talks to seek an early resumption of full supplies,” reports The Nikkei [sub]. Apparently, the talks didn’t go too well, as evidenced by the fact that the name of the company is now out in the open.

The Nikkei says that STMicroelectronics had issued a notice on July 2 that it could supply only slightly more than 80 percent of the 120,000 chips for Nissan vehicles that it was supposed to ship under contract. Hitachi immediately dispatched personnel to Europe, but a senior official at Hitachi’s a said the STMicroelectronics did not provide a detailed explanation.

Hitachi supplies some 90 percent of its engine control units to Nissan. They are short of STM chips that control ignition coils.

STMicroelectronics also deliver to Bosch, Delphi, and Denso. Some Hitachi officials speculated that STMicroelectronics may have given precedence to other clients.

If chips are in short supply, then the auto industry must be doing quite well. Says The Nikkei in another story: “Alarmed by the growing prospects of a shortage of crucial chips for their products, many automakers are already taking steps to secure stable supply.” A spokesman of STM said that the recovery of the automotive business is taking place at a faster rate than expected and that the whole automotive electronics supply chain is currently under pressure to keep up with the market’s demand.