<p style="text-align: center;"><img title="1612328073130605.jpg" alt="7.jpg" src="/ueditor/php/upload/image/20210203/1612328073130605.jpg"/></p><p>&nbsp;Volkswagen&nbsp;is looking into buying chip supplies directly from manufacturers, according to a company executive, as automakers battle a global semiconductor shortage.<br/><br/>&quot;We are thinking about entering direct contractual relationships,&quot; said the executive, who declined to be named.<br/></p><p>&quot;The industry will have to react due to the significance of semiconductors with regard to vehicles today.&quot;<br/><br/>Automakers around the world are adjusting assembly lines due to the shortages, caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic.<br/><br/>Volkswagen, which warned as early as Dec. 4 about the problem, currently sources chips via major suppliers such as&nbsp;Bosch&nbsp;and Continental and has no direct contractual or supply agreements with semiconductor makers.<br/><br/>Carmakers also affected by the shortage include Ford, Toyota, Nissan and Daimler, with the companies having to cut production or planning to reduce working hours due to the disruption.<br/><br/>Volkswagen is currently in multi-party talks with its main suppliers, chipmakers and wafer makers to address the issue, the executive said. &quot;We must ensure that wafer and semiconductor makers know our needs.&quot;<br/><br/>In 2019, automotive groups accounted for roughly a tenth of the $429 billion semiconductor market, according to McKinsey, with NXP Semiconductor, Germany&#39;s Infineon and Japan&#39;s Renesas among key suppliers to the sector.<br/><br/>The executive said that even though it was still unclear what exactly caused the bottleneck, it was crucial not to rely on just one supply path, potentially breaking with a tradition to source chips only via top automotive suppliers.<br/><br/>Solutions could include increasing stocks, as chips don&#39;t take up as much storage space as other automotive components, the executive said.<br/><br/>Robert Bosch and Continental, the world&#39;s two largest automotive suppliers, declined to comment.<br/><br/>Volkswagen expects chip supplies will remain tight during the first quarter, but recover in April-June. It aims to make up for delayed production in the second half of the year.<br/><br/>&quot;To defuse the problem, a transparent cooperation with semiconductor players is needed as well as clear commitments to secure production volumes vis-a-vis other client groups,&quot; McKinsey partner Ondrej Burkacky said.</p>