
Russia-Ukraine conflict could further weigh 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 in the supply of semiconductor chips for the automotive industry, the Frencken Group said.
Frencken Group Executive Director Dennis Au said there was no significant change in the supply shortage seen at the beginning of 2022, in comparison to the second half of last year.
“Apart from the semiconductor supply chain disruption, the Russia–Ukraine conflict has also led to challenges in the supply of automotive electrical harness, which exacerbates the impact on automakers’ production,” Au said.
Whilst recognizing the conflict has affected the world from a macro perspective, he clarified that the conflict had no major direct impact on the automotive industry so far.
“The Group has not experienced any major direct impact from the Russian-Ukraine war to-date, although the automotive industry has seen supply chain challenges,” he said.
“However, from a macro perspective, businesses around the world could face cost pressures due to higher energy prices, supply chain disruptions, and upward pressure on prices of raw materials such as aluminium.”
Commentary
Workplace 3.0: Transforming work environments to support innovation and meaningful work
The race to gender equity for Asia’s startups
How Many Apps Does It Take to Change a Workplace?
In an era of zero-sum thinking, business leaders must unlock a mutually beneficial future
Diversifying your portfolio: Alternative investments in Singapore to consider in a low-interest rate environment
Navigating the digital future: A closer look at Singapore Budget 2023 measures in view of the rapidly changing workplace