Tiny Chips Cast Big Shadow over Munich Car Show

The booth of Chinese carmaker Great Wall Motors (GWM) is seen during a press preview at the International Motor Show (IAA), in Munich, Germany, Sept. 6, 2021. (AFP)
The booth of Chinese carmaker Great Wall Motors (GWM) is seen during a press preview at the International Motor Show (IAA), in Munich, Germany, Sept. 6, 2021. (AFP)
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Tiny Chips Cast Big Shadow over Munich Car Show

The booth of Chinese carmaker Great Wall Motors (GWM) is seen during a press preview at the International Motor Show (IAA), in Munich, Germany, Sept. 6, 2021. (AFP)
The booth of Chinese carmaker Great Wall Motors (GWM) is seen during a press preview at the International Motor Show (IAA), in Munich, Germany, Sept. 6, 2021. (AFP)

As carmakers gathered in Munich on Monday to launch almost exclusively zero- or low-emission vehicles, an ongoing semiconductor shortage cast a long shadow over the first major car show since before the pandemic began.

Forced to shut down plants last year, carmakers now face increasing competition from the consumer electronics industry for chip deliveries. That problem has been compounded by a series of supply chain disruptions during the pandemic.

Cars have become increasingly dependent on chips - for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

Speaking during the launch of a couple of electric vehicles (EVs) on Sunday evening, Ola Källenius, CEO at premium German carmaker Daimler AG, said that while the company is hopeful its own supply will improve in the fourth quarter, soaring demand for chips means the industry could struggle to source enough of them into 2023 - though the shortage should be less severe by then.

“Several chip suppliers have been referring to structural problems with demand,” Källenius said. “This could influence 2022 and (the situation) may be more relaxed in 2023.”

The IAA Mobility show in Munich is the first major motor industry event worldwide since the global coronavirus pandemic.

Despite the ongoing shortage, Daimler board member Britta Seeger said the carmaker does not believe its long-term electric vehicle goals will be affected.

Automakers from US group General Motors to India’s Mahindra and Japan’s Toyota have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

Just last week, Chinese EV maker Nio Inc cut its delivery forecast for the third quarter due to uncertain and volatile semiconductor supplies.

Renault CEO Luca De Meo said on Monday the chip shortage had been tougher than expected during the current third quarter, but said the situation should improve in the fourth quarter.

Major auto supplier Bosch said it expects the shortage will ease somewhat in the coming months, but supplies will remain constrained into next year.

BMW CEO Oliver Zipse said the premium carmaker expects supply chains to remain tight well into 2022.

“I expect that the general tightness of the supply chains will continue in the next 6 to 12 months,” he said.



Skype's Final Call Set for May as Microsoft Prioritizes Teams

FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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Skype's Final Call Set for May as Microsoft Prioritizes Teams

FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Skype will ring for the last time on May 5 as owner Microsoft retires the two-decade-old internet calling service that redefined how people connect across borders.
Shutting down Skype will help Microsoft focus on its homegrown Teams service by simplifying its communication offerings, the software giant said on Friday.
Founded in 2003, Skype's cheap audio and video calls quickly disrupted the landline industry in the early 2000s and made the company a household name boasting hundreds of millions of users at its peak. But the platform has struggled to keep up with easier-to-use and more reliable rivals such as Zoom and Salesforce's Slack in recent years.
The decline was partly because Skype's underlying technology was not suited for the smartphone era.
When the pandemic and work-from-home fueled the need for online business calls, Microsoft batted for Teams by aggressively integrating it with other Office apps to tap corporate users — once a major base for Skype.
To ease the transition from the platform, its users will be able to log into Teams for free on any supported device using their existing credentials, with chats and contacts migrating automatically.
With that, Skype will become the latest in a series of high-flying bets that Microsoft has mishandled, such as the Internet Explorer web browser and its Windows Phone. Other big tech firms have also struggled with online communication tools, with Google making several attempts through apps including Hangouts and Duo, Reuters reported.
It was not clear how many users or employees would be impacted by the move. Microsoft did not immediately respond to a request for the figure.
When Microsoft bought Skype in 2011 for $8.5 billion after outbidding Google and Facebook — its largest deal at the time — the service had around 150 million monthly users; by 2020, that number had fallen to roughly 23 million, despite a brief resurgence during the pandemic.
Microsoft said on Friday "Skype has been an integral part of shaping modern communications".
"We are honored to have been part of the journey."