Greater cross-sector dialogue needed to solve chip crisis

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The current global shortage in the supply of computer chips to the automotive industry is causing significant disruption to production and looks likely to continue into next year. There are signs though that the current crisis could lead to new forms of partnership between the automotive and semiconductor industries, and a move away from the rigid hierarchy of the traditional automotive supply chain. That promises to lead to a more secure relationship for the future.

The current global shortage in the supply of computer chips to the automotive industry is causing significant disruption to production and looks likely to continue into next year. There are signs though that the current crisis could lead to new forms of partnership between the automotive and semiconductor industries, and a move away from the rigid hierarchy of the traditional automotive supply chain. That promises to lead to a more secure relationship for the future.


At this year’s Automotive Logistics and Supply Chain Europe Live conference
, Jérémie Bouchaud, director for Autonomy, E/E & Semiconductor at analyst firm IHS Markit, said that the shortage in semiconductors has led to a global vehicle production shortfall of 2m vehicles so far this year. Of that figure 1.4m were lost in the first quarter of the year and as many as 700,000 in the first two weeks of the second quarter, with all regions now being affected in equal measure.

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