Carmakers need to get better connected with the semiconductor manufacturers supplying them if they are to avoid the sort of disruption they are currently experiencing, including through investment in joint production
The automotive industry is preparing for extended assembly disruption because of the semiconductor shortage. The latest industry analysis predicts that the impact on production will last beyond this year and into 2022.
The rapid increase in sales of consumer electronics during the Covid pandemic, combined with the accelerating digitalisation of workplaces, means semiconductor production is struggling to meet demand. Added to which, the automotive industry is still fighting to regain its share following shutdowns that only temporarily curtailed demand but cancelled orders.
Companies are setting out strategies to stabilise and reorient production to avoid future turbulence. For the automotive sector, that involves becoming more focused and in control of the latest technology being used in the vehicles they are assembling, including the digital software running systems in the car and the hardware on which it is running.
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