We understand how frustrating delays are and apologise for the difficult situation. Please know we’re prioritising all our current vehicle orders and continue to do everything in our power to meet demand.
We appreciate your patience and loyalty, and we’re working to minimise the impact of global delays on all our customers.
As of late 2020, there’s been a global production backlog of semiconductors, the electronic circuitry that enables software in modern vehicles. Unfortunately, these delays are still impacting much of the automotive industry around the world, including Volvo.
Volvo has a dedicated team, actively sourcing semiconductors to minimise production disruptions.
Delays vary by model and package, we’re continuously updating our dealers as the situation evolves.
We’re working closely with our global counterparts and dealers to provide up-to-date information.
What is a semiconductor?
Semiconductors are also known as integrated circuits, or what you’d call a computer chip. It’s a series of electronic circuits printed onto a conducting material, usually silicon. They form the physical building blocks that are used to make computers and run software.
How does Volvo use semiconductors?
We use these for a range of vital functions, from basics like our car seats and rear-view mirrors, to optional technologies like our Blind Spot Information System. There are roughly 80-130 components that contain semiconductors in any Volvo vehicle.
Why is there a shortage in semiconductors?
Currently, the global demand for semiconductors is at record levels, and there are few different factors creating the shortage.
A huge increase in demand for computer gear and other electronics has pushed the existing semiconductor production capacity for to its limit. At the same time, the global supply has been impacted by a multitude of factors since 2020. These include: • Pauses on, and reductions in, production at major global semiconductor plants, due to the pandemic and severe weather issues • Implementation of trade barriers which are limiting sources of semiconductor production in many global markets • Constraints on the global supply of neon, required in semiconductor production, due to the Russian-Ukraine war
Where does Volvo source its semiconductors from?
The semiconductors used for Volvo components are mainly manufactured in Asia and the US. We buy these from our global sub-supplier network. Due to competitive reasons, we don’t disclose our suppliers.
How is Volvo addressing this issue?
Unfortunately, this is a volatile situation that’s changing day by day but we’re doing everything we can. We’ve created a dedicated team at Volvo, acting to source semiconductors and minimise production disruptions. However, we’re still unable to consistently source the volume needed to meet current production demands. This means there are still temporary interruptions and delays across our global production plants.
When will the shortage be resolved?
The semiconductor situation is very volatile, and Volvo are determined to source as many semiconductors as possible for global vehicle production. At this point we’re unable to provide a timeframe for when it’ll be resolved, but we’re working to provide the most up-to-date information as it evolves. We can assure you that we’re doing everything in our power to reduce delays.