Continental Says Chip Shortages To Cause Auto Supply Bottlenecks Until 2021

German auto supplier Continental said on Friday that a rebound in Chinese demand following a global slump in sales caused by COVID-19 is leading to a shortage of semiconductors that may cause supply-chain bottlenecks until 2021.

"Although semiconductor manufacturers have already responded to the unexpected demand with capacity expansions, the required additional volumes will only be available in six to nine months," Continental said of the supply of semiconductors.

"Therefore, the potential delivery bottlenecks may last into 2021."

Earlier on Friday, Volkswagen said China's overall auto production could be interrupted after the COVID-19 pandemic disrupted chip supplies globally for some electronic components.