Automotive component and parts suppliers are cautious about shipments in the second half of this year, despite brisk order visibility they have, according to industry sources.

Demand has recovered, but shortage of semiconductor persists. MiTAC Digital Technology president Steve Chang has noted most customers understand supply of materials is constrained and are willing to extend orders. However, with a broad shortage of IC, sensors, and memory, supply is expected to remain tight into next year.

According to Chang, it is easier for the company's production of own-brand products, compared to OEM production, to adjust to supply conditions. Although sales are being somewhat affected by new waves of COVID in the EU, Australia, and parts of Asia, he still expects higher revenue in the second half of 2021.

Getac Group chairman James Hwang said shipments of car parts have had to be deferred since the second quarter of 2021, as production at clients has been disrupted by shortages of electronic components, and such delays are likely to continue in the third quarter. It remains to be whether the clients will start taking deliveries the end of the year.

The worldwide shortage of chips has left a huge gap to fill, and huge portions of demand are expected to be left unfulfilled by the end of 2021.

By DIGITIMES