(Bloomberg) -- German semiconductor manufacturer Infineon expects shortage of its core product to be over next year, with the situation improving in summer.

“I assume that we will be able to cover demand well in 2023,” the head of Infineon’s automotive unit, Peter Schiefer, told trade journal Automobilwoche. “Last issues will be resolved in 2023.” 

To meet the growing demand, Infineon plans to expand its production capacities, including investment in its EU1.6b semiconductor plant in Austria’s Villach, inaugurated last year, he said.

The global chip shortage hit the auto industry hard last year and halted vehicle manufacturing across regions. Automakers from Volkswagen AG to Stellantis NV are hoping the supply-chain snarls will gradually ease this year but have warned chip supply will remain tight in the first half.

©2022 Bloomberg L.P.