According to Nikkei Asia, as of the end of September, the inventories of Renesas Electronics, NXP, Infineon, STMicroelectronics, and Texas Instruments have all shown an upward trend. This is the first increase since this year, showing that chip supply in the automotive industry is improving.

Nikkei stated that the total inventory of the five chip makers, Renesas Electronics, NXP, Infineon, STMicroelectronics and Texas Instruments, increased by 0.7% from the same period last year, the first increase in three quarters.

The report pointed out that although demand is still strong, the rebound in inventories shows that chip makers have increased production and the supply constraints encountered by car companies are alleviating.

Continental, one of the world's largest auto parts suppliers, said on a recent earnings conference call, "We believe that the period of the most severe semiconductor shortage has passed."

However, chip companies believe that the entire supply chain of chip inventories will take more time to recover. NXP’s CFO Bill Betz said on the company’s recent earnings conference call: “We still believe that we need multiple quarters to rebuild existing inventory and direct inventory to our long-term target level.”