Chinese automotive giant GAC Group has set up a task force to explore alternatives to key chips, The Beijing News reported on April 7.
GAC held a meeting with chip suppliers in January and ordered chips for the year according to its annual demand plan, it said.
The chip shortage has had a manageable impact on the company's production and is expected to ease gradually in the second quarter, GAC said in an April 1 exchange with investors.
GAC said its portfolio companies are strengthening communication with component suppliers to secure the supply of chips and other core components and try to ensure the normal operation of product production.
GAC said it will adjust production plans to maximize the production of models less affected by the chip shortage to reduce losses.
GAC Capital invested in Chinese chip company Horizon Robotics in September last year, and the released GAC version of the Journey 3 chip will be equipped in future production models.
GAC said that in the medium to long term, the company needs to rely on independent innovation in basic and core technologies to maintain supply chain stability and promote industry chain upgrade and transformation.