By Marcus Williams2021-04-27T10:16:00+01:00
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.
Semiconductor crisis impact could peak in April, affect production till June by Sumantra B Barooah 13 Mar 2021 With growing levels of connectivity in vehicles, automotive semiconductor ICs with varying functionalities are used for multiple applications. Mahindra & Mahindra, which is seeing good demand for its SUVs, is bracing itself for the chip/semiconductor challenge to continue for another 3 months or so. Bajaj Auto’s premium motorcycle segment comprising KTM, Husqvarna and Dominar is notching sales of nearly 12,000 units each month but losing production due to supply chain problems in the form of shortage of semiconductors and ABS parts. Tata Motors’ Thomas Flack has urged the re-modelling of su
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On Friday, February 26, 2021, OESA (Original Equipment Suppliers Association) hosted a webinar analyzing the impacts of the global semiconductor shortage on the automotive industry. The program kicked off with a presentation from Jérémie Bouchaud, Director E/E & Semiconductor, IHS Markit entitled, “Chip Shortage: Don’t We Ever Learn?” He shared his view that the chip shortage was not unexpected. He then walked through what he saw as some of the fundamental issues driving the chip shortage:
The Gap Between the 12-Week Firm Order and Product Times: In automotive, there are typically 12 weeks of firm orders (from Tier 1 suppliers to chip vendors). However, it takes more than 12 weeks to produce a chip. It can take 14-16 weeks to produce chips and up to 24 weeks for complex chips. He explained that this creates an inherent gap in the production process.
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