(Yicai Global) Sept. 13 -- The recent fining of three Chinese auto chip makers for stockpiling their wares amid a global chip shortage might act as a deterrent and help to stabilize prices in the short term, but ultimately it does not resolve the underlying problem of insufficient chip capacity, according to industry insiders.

Shanghai Qiete Electronic, Shanghai Chengsheng and Shenzhen Yuchang Technology were fined a combined CNY2.5 million (USD387,471), the State Administration for Market Regulation said on Sept. 10.

"Some traders hoard chips and sell their products to small downstream manufacturers at higher prices,” said Fang Jing, an industry analyst at Cinda Securities. The fines serve as a stern warning to sellers of other integrated circuits, not just auto chips, he added.

China needs to beef up support of the automobile chip sector, so as to underpin the rise of the new energy vehicle industry, said Xia Guigen, a senior strategic consultant in the semiconductor industry.

Shareholders hurried to distance themselves from those involved. The parent firm of Yuchang Tech is 51 percent owned by a company called Ecarx Technology, founded by Ecarx chairman Shen Ziyu and the chair of car giant Zhejiang Geely Holding Group Li Shufu.

"Geely has no investment relation with Yuchang Tech," financial news outlet CLS reported on Sept. 11, citing the Hangzhou-based automaker.

Editors: Xu Wei, Kim Taylor