{"id":132437,"date":"2026-03-23T10:09:04","date_gmt":"2026-03-23T13:09:04","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/901240757"},"modified":"2026-03-23T10:09:04","modified_gmt":"2026-03-23T13:09:04","slug":"mideast-conflict-dents-chip-manufacturing","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/23\/mideast-conflict-dents-chip-manufacturing\/","title":{"rendered":"Mideast conflict dents chip manufacturing"},"content":{"rendered":"
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Ripple effects hit auto sector in particular<\/p>\n<\/p><\/div>\n

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A hybrid engine on display at the 47h Bangkok International Motor Show. Rising oil prices may boost interest in battery EVs, though petrol-electric hybrids remain popular. (Photo: Pattarapong Chatpattarsill) <\/figcaption><\/figure>\n<\/p><\/div>\n

The United States and Israeli military operations against Iran are disrupting global supply chains, hitting semiconductor manufacturing hard and reverberating through chip\u2011dependent industries, particularly the automotive sector, which is watching developments closely.<\/p>\n

Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand, said on Monday that the shortage of chips could slow production and push up costs.<\/p>\n

\u201cThe chip shortage will affect car production, leading to manufacturing slowdowns and higher operating costs amid oil price volatility. Cars will eventually become more expensive,\u201d he warned.<\/p>\n

A key factor behind the crisis is helium. Attacks on Qatar\u2019s Ras Laffan facility \u2014 one of the world\u2019s largest helium hubs \u2014 have knocked out about one-third of global supply, according to media reports.<\/p>\n

Helium is indispensable for semiconductor production, and the shortage is now threatening chipmakers in Asia, including those supplying Thailand\u2019s automotive industry.<\/p>\n

Hyundai believes global automakers can manage the shortage in the short term, but if the conflict drags on, the situation could worsen.<\/p>\n

Rising oil prices are compounding the problem, fuelling inflation and raising concerns over fuel availability at service stations.<\/p>\n

\u201cIt\u2019s difficult to predict how the situation will develop. We have to assess it daily,\u201d Mr Wallop said.<\/p>\n

The crisis is also reshaping consumer behaviour. Higher oil prices may encourage some buyers to consider battery electric vehicles (BEVs).<\/p>\n

Domestic BEV sales surged 80% last year to 120,301 units, according to the Federation of Thai Industries.<\/p>\n

However, industry leaders caution that the shift will be limited. Ratthakarn Jutasen, managing director of Ford Thailand, said higher oil prices are unlikely to trigger a mass move to BEVs, noting that many consumers still prefer internal combustion engine (ICE) cars.<\/p>\n

Mercedes\u2011Benz Thailand\u2019s chief executive, Christian Schell, echoed this view, saying that while rising oil prices may delay purchases of ICE cars, they are unlikely to lead to a dramatic shift to BEVs.<\/p>\n

\u201cThailand has many choices, including hybrid electric vehicles (EVs) and plug-in hybrids, which still rely on oil,\u201d he said.<\/p>\n

Volvo Car Thailand\u2019s managing director, Chris Wailes, added that the war is piling pressure on an already fragile Thai economy, burdened by household debt and weak consumer purchasing power.<\/p>\n

While the company has seen signals of increased interest in BEVs, he believes it is a short-term trend, expecting oil prices to ease once the conflict subsides.<\/p>\n

Global carmakers are betting that the upcoming 47th Bangkok International Motor Show<\/a>, running from Tuesday to April 5, will generate stronger interest in BEVs, boosted by the launch of new models.<\/p>\n

Yet, with conflict-driven supply shocks and cautious consumer demand, the industry remains on edge, bracing for a year of uncertainty.<\/p>\n<\/p><\/div>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… chip\u00e2\u0080\u0091dependent industries, particularly the automotive<\/span> sector, which is watching … supplying Thailand\u00e2\u0080\u0099s automotive<\/span> industry. Hyundai believes global automakers<\/span> can manage the … once the conflict subsides. Global carmakers<\/span> are betting that the upcoming …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-132437","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/132437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=132437"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/132437\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=132437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=132437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=132437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}