LUDWIGSBURG (Reuters), – The chief executive officer of German technology firm Robert Bosch GmbH indicated Wednesday that, although temporary supply shocks had passed in the semiconductor industry, global demand was still being met by the company’s capacity.

Volkmar Denner, speaking on behalf of the auto industry at Automobilwoche’s Ludwigsburg conference said that “there were one-time difficulties which are now being dealt with.”

“What’s happening now is a structural shortage: There is more demand than there are production capabilities.”

Bosch allocated more than 400million euros (or $4622.56 million) to microchip production investments in Germany and Malaysia for next year. The largest portion of the budget was spent on an expansion of its Dresden factory that produces 300-millimeter wafers. This project was inaugurated in June.

Denner explained that Bosch depends on other suppliers for parts of its chips, sensors and electronics. As such, Denner was experiencing the impact of the bottlenecks worldwide on the supply of semiconductor products, including cars as well as a variety of electronic goods.

We can relieve the pressure from the pipeline by making things ourselves. Denner explained that the Bosch sensor can have a lot more parts than what we purchase from others.

($1 = 0.8648 euros)