Nio and Tesla supplier Bosch China to cut off chip deliveries in August as its Malaysian supplier shut down due to epidemic

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David Xu, the vise president of Bosch China, released on Tuesday that its overseas semiconductor supplier in Muar, Malaysia, was shut down by the government due to pandemic restrictions. The supply will be directly affected, and it is expected to be completely suspended through August and the beginning of September. The factory in Muar is specialized in producing ESP/IPB, VCU, TCU chips.

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Bosch is one of the most important suppliers in the automotive and mobility industry. It has 395 thousand employees worldwide. In China, it supplies chips and car parts to the main car manufactures as Changan, FAW-Volkswagen, BMW Brilliance. In 2018 Bosch also signed a strategic agreement with mobility startup Nio for the supply of EV-related components. Bosch is also the supplier of Tesla, recently out of favor of Elon Musk, who claimed their chip supply chain is problematic.

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The CEO of EV startup Xpeng He Xiaopeng posted on his social media on Tuesday evening a message about the risk of some core components shortage due to supply outages from Bosch China.

On 15th August internal document from FAW-Volkswagen leaked, revealing Chinese made Audi A4l, and Audi A6L production will be paused due to chip shortage. The expected production recovery is not sooner than Q1 2022. FAW-Volkswagen didn’t confirm this information.

The number of new infections is growing in Malaysia. On August 16th, there were almost 20 000 new cases. The recent epidemic outbreak has a great impact on the local semiconductor industry. Wang Shoutai, chairman of the Malaysian Semiconductor Industry Association, confirmed: “Some factories with a high level of infected workers have been closed.” More than 50 global semiconductors giants have their plants in Malaysia, including Qualcomm, Micron, STMicro, and Infineon.

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The news comes after several Chinese automotive CEO suggested the chip shortage will ease soon, including SAIC president, Wang Xiaoqiu, who claimed the semiconductor delivery issue is expected to return to normal in Q3 2021.

We are following the topic for more updates.

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  1. too much double talk about auto-chip shortages. the ‘war’ against Tesla and all aims direct and indirect to limit, delay and styme Tesla growth by the legacy makers, who recently got the Pres to give them thousands for so-called union made cars even though 70%of all Ford, GM cars sold in the US are NOT made, or even assembled in the US by union workers but by Mexico and other nations non-union…. means….. Tesla engineers as early as March 2021 had to have a ‘backup plan’. Or plans, which they quickly and effectively launched. One, was in-house re-directed chips for cars on boards, another was to take out radar systems and thus lower chip demand requirements, third, to transfer other non auto chip sets into car sets, fourth was to use lower grade chips for MIC-sold inChina models, and so on. Not to mention both ‘reproduction, regeneration and limited actual’ chip creation within Tesla operations. the war was on, and so far Tesla has accomplished ‘keeping rates of production up’ with only a total of 4 missed production days in Q3, and… sad to say, the ravishing of Model x, s and projected other projects. meaning, 98% of all chip sets by Tesla, be they lower grade, transfers or in-house; go for model 3 and Y production only; currently. This alone has ‘won the short-term day’ against the legacy makers for 2021. Of course, another thing that happened was a ‘reserve chip’ supply designated for Austin and Berlin factories to start producing between July and Oct 2021…were ‘all’ sent to Fremont and China. thus, the ‘window dressing’ delays in TX and GR were not regulatory or construction slow-downs;…but that the chips ‘originally designated’ to these factories for Q3 start of production and Q4 …were and are ‘expended’ at Fremont. This report does not take into account the ‘theft’ of cases of chips in China, which were semi-tracked down by the gov’t there without full recourse. The chip situation will continue into Q1 2022, and likely affect ‘expanded production’ at the 2 new Tesla factories into Q3 2022 – which Musk has carefully aluded to in his Sept ’21 message that Berlin will take 1 year to reach volume. What this means for Tesla, and the ‘bad big 3’ in the US is simple: 1. tesla is adversely affecting future buyer sentiment, erroded by delays. 2. Tesla’s original hope that Berlin and Austin would be in limited production by end of Q3 2021 – means a ‘loss of sales’ of 12% or more for the year, and a loss of market share position well into 2022. 3. Tesla in 2022; will see increased compitition by others, and also see a ‘rapid softening’ of loyaltists numbers and sales results. Musk is betting on a ‘ford 1910’ move against the big 3 by smaller cheaper cars by 2023-24; but will, or may, lose themid-market and upscale markets by these enormous delays to cyber, semi, roaster, and refreshed s and x. public sentiment, particularly with the 50K+buyer demographics, is both shrinking and being eroded more quickly than Musk and team expect. Solutions: stop the model s and x delays and bring the Cybertruck to Q2 delivery 2022. 2. stop any of your thoughts Elon on selling out to Ford by 2026. 3. UP your finished product quality by 25%, and STOP eroding the ‘lower grade engineering and manufacture’ of your vehicles, which are seeing ‘purposely re-engineered efforts’ to produce-design lower-lifespan cars… a compromise that betrays us all and our vision of ‘sustainable’… I.e. new engineering and materials by Tesla have ‘softened’ lifespan expectancy by lowering the specs and vision-hopes of long-lasting durable vehicle designs and productions. Yes, we are watching these trade reports from your engineering side. And are aware of those ‘arguments’ in your departments when asked to ‘degrade’ the high-spec aspirations of the motor and other systems. Conclusion… the China and Texas choices of factories… were a mistake. the influence of ‘short term cash and long term low-grade products’… are in-force. like the big 3, Tesla is being slowly ‘watered down’ from a high-quality engineered produced product…to something just as flawed as the big 3 produce. this is so very terribly sad, and anti-sustainability to the original visoin and motives of musk and company. FUTURES: Shanghai will see slowdowns with the excuse of retooling to a smaller cheaper MIC SIC model. good excuse though, and good plan. Austin will see more limits and liabilities than musk realises. a new US factory is ‘in doubt’ after 2023, elsewhere. Berlin operations will ‘survive’ but not thrive in EU sales sustainment for any mix of models, but will be profitable enough to remain liquid. Globally, it is very doubtful an India or other nation-state Tesla large factory will be in play up to 2030; and likely ‘smaller operations’ to win market entry will be Musk’s play on those other nations and regions. The model T of ford, and musks 25K car…will be Tesla’s own undoing… the same error as Studebaker … who won the American ‘high end, high quality’ car market … then switched to the ‘cheap car market’ and died. I suggest to Musk: 1. listen to those who know history, who have sustainable durability in mind. 2. break up Tesla efforts into two segments… maintaining the ‘high end’ car market share and R&D to retain that with new models and upgrades…… and let this be the ‘legacy backbone’ of Tesla survival… and … 2. the other ‘arm’ of tesla should be specialty high-Net vehicles.. and…. avoid going bankrupt into a 20 or 25K car, but offer these as a triciary effort and investment at best. 4. focus on Tesla home owner as power company efforts and melding ‘total self sustainable package’ program for home, auto, etc. as a new and true product line. 5. REVERSE all compromises in engineering quality of ‘cars that could last 10 years’..and move to cars that can last 20, and home systems, and all….. for this, you pay me, and I’ll show you want NO auto maker has considered…. as to true ‘return-recycle’ sustainable vehicle approaches to manufacture and so on… .. ask, if you are smart enough to be hope and ‘honor’ for what is the best true sustainable heritage approach to E-vehicle futures.


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