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being reduced and deliveries of new cars
were slowing.
Toyota has eight plants in the EU.
Turkey
Turkish automaker Oyak Renault on March 9 announced that it would halt production at a plant that produces Clio and Megane models from March 15 to March 22 because of the global chip shortage.
As Oyak Renault’s stoppage got under way, Turkish automaker Tofas. owned jointly by local conglomerate Koc Holding and Fiat Chrysler Automobiles, announced in a Borsa Istanbul filing that it would suspend production from March 19 to April 5 due to chip supply problems.
Tofas said the company has been impacted by the chip deficit “due to
the high technology in its products, the increasing use of electronic composition and the world-integrated production system”.
Analysts said that if the chip crisis spread to other carmakers in
Turkey, damage would be felt in the macroeconomy. Automotive is Turkey’s largest export industry.
Hungary
In Hungary, reports began to emerge as early as mid-January of disruption caused to automaking by the dearth of chips.
Mercedes-Benz Manufacturing Hungary halted production at its factory for 10 days at the end of January.
Also at the end of January, German carmaker Audi's base in Hungary returned to three shifts after reducing the number to just one for nearly two weeks because of the semiconductor squeeze.
Audi Hungaria said global demand for semiconductors had increased by such a scale that parts deliveries failed
to arrive or came late. The auto-
chip shortage stemmed from overly conservative demand estimates made by carmakers, while chip manufacturers allocated more capacity to meet soaring demand from consumer electronics makers, it added.
On March 12, data from Hungary’s Central Statistics Office (KSH) on March 12 showed the output of the country’s automotive industry fell 27.5% y/y in January due to the scaled back production. The sector accounted for 25% of Hungary’s total manufacturing output in the month.
Uzbekistan
Sole Uzbek car manufacturer UzAuto Motors on March 2 said it planned to delay delivery times on manufactured vehicles by up to two months because of the impact on production of the worldwide shortage of semiconductors.
Central Europe I 31 Production plans for the second quarter
have been affected, the state-owned company said.
UzAuto Motors makes Chevrolet cars under a deal with US giant General Motors.
“GM's Global Supply Chain Management works closely with suppliers to find solutions to their semiconductor requirements and mitigate the impact on GM and its partners, including UzAuto Motors. Our intention is to cover as many production losses as possible at each facility," said Christian Sommer, GM's president and managing director of strategic markets, alliances and distributors. He said he anticipated
that the situation would stablise in the second half of this year.
EU's ambitious target
The BBC has reported that the European Commission has set an ambitious target to boost production of cutting-edge computer chips by the end of the decade. It wants 20% of such chips, in terms of value, to be manufactured within the EU by 2030. The figure was 10% in 2020.
Setting up chip fabrication factories is, however, tremendously expensive. A large plant can cost up to $20bn to build and kit out, according to a 2020 report by the US's Semiconductor Industry Association (SIA). And it can take many years before the plant can make a profit.
bne:Tech
Contents
Top stories
Russia’s top retail and tech companies join forces to hunt for innovations in the rest of the world 2 Ukraine-born startups raised more
than half a billion dollars in 2019 4 Russian video streaming platforms
gain speed 5 Cloud services take off in Russia 6 SEMrush to SEO success 8
Leaders 9
Russia’s internet giant Yandex
announces growing and more
diversified revenues in 2019 10 Russian telecom major Rostelecom misses on earnings in 4Q19, cash
flow solid 12
Investment 13
World Bank approves $35mn project
to modernise Kyrgyz tax administration and statistical system 13 Romanian online home decoration
retailer raises €3.5mn in bonds 14 Russian billionaires Abramovich, Gutseriev, said to invest in Telegram
crypto project TON 14 Russian fund Da Vinci Capital gets
€30mn from Germany’s DEG to invest
in Ukraine, Belarus and Kazakhstan 15
Fintech & E-commerce 16
Russian e-commerce major
Wildberries to add self-employed
vendor products to offering 16 Russian Dixy retailer to launch online sales with Ozon 17 Valuation of Sistema’s e-commerce
asset Ozon boosted to $1.8bn 17
Telecom 19
Makedonski Telekom’s net profit
up 6% y/y in 2019 19 Romanian telco Digi grows by double
digit rates in 2019 19 Russia could postpone 5G rollout
from 2022 to 2024 20
NIBs 21
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Russia’s top retail and tech companies
join forces to hunt for innovations in
the rest of the world
BAs Russia’s retail and tech sectors consolidate, the leading companies are turned their gaze outwards to hunt for
bne:Tech
new technology and innovation.
See page 2
Ukraine-born startups raised more
than half a billion dollars in 2019
In 2019, the venture capital and private equity funding volume for Ukrainian and Ukrainian-founded tech startups reached $544mn (up from $323mn in 2018 and $265mn in 2017), says AVentures Capital’s latest industry report ”DealBook of Ukraine”,
reports Adrien Henni of Ukraine Digital News. See page 4
www.bne.eu