The semiconductor shortage plaguing the German auto industry will take years to resolve, a senior Audi manager has said.

Manufacturing delays have impacted both the auto and consumer electronics markets in Germany as a result of a global shortfall of chips. The current state has underlined for many countries the need to develop local chip manufacturing, with the vast majority of semiconductors globally produced by the small island of Taiwan.

Last month, the German government announced plans to invest around €20 billion in its semiconductor industry, offering subsidies through the EU Chips Act which aims to double the bloc's share of global chip output to 20 per cent by 2030.

This commitment however will not rectify the immediate shortfall. Speaking to the Augsburger Allgemeine newspaper, Renate Vachenauer, head of procurement at the Volkswagen-owned Audi said: "It takes years, after all. It's about billions of dollars being invested.

The executive said that current bottlenecks could be eased by reducing the varieties of chips used. She said that there are around 8,000 different types of chips in vehicles today.

“We have to use many levers to stabilise the supply of semiconductors and also stock up on the broker market to some extent.”

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