Benzinga | Apr 22, 2021 03:06PM EDT

Bosch Expresses Chip Crisis Concerns Despite Growth Forecast: Reuters

* German engineering and technology company, Robert Bosch GmbH, estimated a 6% sales growth and 3% in operating margin growth for 2021 after reporting a 17% jump in first-quarter sales subject to the intensity of the global semiconductor chip crisis, Reuters reports.

* The company did not expect any improvement in the near term. It prioritized the resolution of the impending issue followed by precautionary measures for future crises.

* The production at Bosch's new Dresden plant will commence three months in advance from Sep. However, it was unable to resolve the chip supply bottleneck as specialized companies manufactured them.

* The chip crisis has impacted the integrated circuits, automotive microcontrollers, and application-specific integrated circuits, Bosch said in March.

* The pandemic-induced demand spike for consumer electronics industry chips fueled the auto chip crisis. Automakers have become increasingly dependent on chips for everything ranging from computer management of engines to driver-assistance features.

* Recently luxury carmaker Daimler AG (OTC: DMLRY) announced a reduction in the working hours for up to 18,500 employees and temporary production suspension at two German plants due to the chip crisis.