PARIS: The French automobile sector could face supply glitches caused by a shortage of technology chips used in engine management and driver-assistance systems for several more months, warned the French finance ministry on Thursday.

The finance ministry added that French companies from the automobile and electronics sectors would be working together in the near-term to improve and fix supply chain glitches that have hit the country's car industry.

Carmakers around the world have been impacted by the shortage of chips used in engine management and driver-assistance systems. Those chips mainly come from Asia, especially Taiwan.

Last week carmakers Renault and Stellantis said they had both suspended car production at several factories as they grappled with the worldwide shortage of crucial semiconductors.

The COVID-19 crisis has driven up demand for chips used in electronics such as laptops and phones, and manufacturers are struggling to keep up, with some Chinese suppliers also hit by US sanctions by the former Trump administration.

The French government also wants to do more to ensure that more production of electrical components occurs on French sites, added the finance ministry on Thursday.