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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.
The 2021 Global Semiconductor Crisis natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
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