Headlines
Chip shortage intensifies in German industry, says Ifo
Published by Global Banking and Finance Review
Posted on October 29, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 29, 2025
BERLIN (Reuters) -Shortages of materials for German manufacturers of electronic and optical products became more acute in October, driven by a tightening of global controls on rare earth components, the Ifo economic institute said on Wednesday.
Rare earths, essential for producing semiconductors, sensors and other advanced components, have become increasingly subject to trade restrictions, particularly from China, which dominates global supply.
Some 10.4% of companies in the sector in Germany reported supply bottlenecks in October, up from 7.0% in July and 3.8% in April, said the institute.
"The control mechanisms and trade restrictions for rare earths are taking their toll," said Klaus Wohlrabe, head of Ifo surveys. "If this trend continues and worsens it will also have a negative impact on economic growth."
In manufacturing as a whole, only 5.5% of companies reported supply problems, said Ifo.
Germany's industry has faced severe supply chain disruptions and European policymakers are trying to reduce dependence on critical raw materials by diversifying supply chains and boosting domestic production of rare earths but this takes time.
(Writing by Madeline Chambers, editing by Kirsti Knolle)