Feb 7 • 16:29 UTC 🇨🇿 Czechia Deník N

Germans are investing billions in 'outdated' technology, which may be more important than the most modern ones

Germany is investing heavily in semiconductor technology deemed 'outdated' by the industry, highlighting a critical vulnerability in Europe's automotive sector.

As Germany invests billions into semiconductor technology classified as 'outdated', particularly in the 28 to 22 nanometer range, the European automotive industry is feeling the pinch. Following the Netherlands' nationalization of Nexperia and subsequent halted exports from its Chinese branches, major car manufacturers like Volkswagen, BMW, and Stellantis have had to cut back on production due to the unavailability of essential electronic components. This scenario underscores how reliant the automotive industry is on these so-called outdated chips, despite significant media focus on advanced technologies such as three-nanometer processors and AI accelerators.

The automotive sector's struggle illustrates a disconnect between current technological advancements and the practical components that power much of the industry. While the cutting-edge three-nanometer chips generate headlines with their advanced capabilities, many vehicles are still heavily reliant on older chip technologies. This reality forces industry leaders to reconsider their supply chains and priorities, as the inability to access these older components poses a severe threat to production and innovation in the automotive arena.

This investment trend also brings forward broader implications for technology focus within Europe. As countries and companies pivot towards developing high-tech solutions, the lessons learned from the current semiconductor shortage could reshape future investments and strategies. Germany's commitment to investing in these 'outdated' technologies may not only safeguard critical supply chains but could also serve as a wake-up call for other nations to reassess their reliance on cutting-edge technology without adequately securing older, yet essential, components.

📡 Similar Coverage