Components crunch: China’s carmakers face rising costs to keep intelligence edge

AI Summary

Chinese smart vehicle manufacturers face rising costs due to global component shortages and higher raw material prices driven by AI demand. Production ramp-up for key intelligent vehicle parts like PCBs and MLCCs is expected to take at least a year.

Chinese smart vehicle makers have been hit by another setback as a global components shortage collides with surging prices of raw materials, driven by the artificial intelligence boom. It would take at least a year for the global supply chain to ramp up production of printed circuit boards (PCBs) and multilayer ceramic capacitors (MLCCs) – two key parts that make vehicles intelligent – to meet rising demand, according to industry officials and analysts. “The components, though small, play a key...