{
  "id": 2510707,
  "title": "Components crunch: China’s carmakers face rising costs to keep intelligence edge",
  "url": "https://urgent.news/2026/08/22/components-crunch-chinas-carmakers-face-rising-costs-to-keep",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-22T06:00:26.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/business/china-evs/article/3364766/components-crunch-chinas-carmakers-face-rising-costs-keep-intelligence-edge"
  },
  "original_language": "en",
  "account": "Chinese automobile manufacturers are grappling with a new challenge: a shortage of electronic components coupled with rising prices, hampering their efforts to maintain a technological edge. The global supply chain is struggling to ramp up production of printed circuit boards (PCBs) and multilayer ceramic capacitors (MLCCs) – essential components for making vehicles more intelligent. These components, though small, are crucial for the automotive industry's push towards autonomous and smarter cars. Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, emphasized the significance of these components in the industry's quest for autonomous vehicles. However, the market demand for electric vehicles is declining, yet the supply of components remains a critical issue for leading players. Industry officials reported a 20 to 30 percent shortage of components, with prices more than tripling over the past year. The main culprit behind the cost pressure on manufacturers is memory chips, though the lack of PCBs and MLCCs is also disrupting production. Dai Yong, Geely Auto's CFO, noted that the price hikes in these components had minimal impact on earnings as they constitute a small portion of total expenses. However, memory chips for data buffering, processing, and storage, essential for autonomous driving, have been squeezing profit margins. Ecarx, a tech firm, highlighted the importance of market know-how in planning ahead. By collaborating closely with upstream manufacturers, car parts suppliers can anticipate trends and secure sufficient supply, as demonstrated by their partnerships with PCB maker Victory Giant Technology, semiconductor firm Monolithic Power Systems, and tech giant Samsung. Despite the declining mainland market sales, analysts warn that manufacturers' push for smarter cars could exacerbate the components shortage.",
  "summary": "Chinese smart vehicle makers have been hit by another setback as a global components shortage collides with surging prices of raw materials, driven by the artificial intelligence boom. It would take at least a year for the global supply chain to ramp up production of printed circuit boards (PCBs) and multilayer ceramic capacitors (MLCCs) – two key parts that make vehicles intelligent – to meet…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "title": "China banned ivory, but Vietnamese gangs keep the trade alive",
        "url": "https://urgent.news/2026/08/22/china-banned-ivory-but-vietnamese-gangs-keep-the-trade-alive",
        "published": "2026-08-22T03:00:20.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}