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The chip crunch has driven home the need for automakers to be "proactive" right now, and create "supply-chain resiliency" longer term to avoid disruptions in the future, the firm said on Friday. Automakers have in the past had direct supply agreements with producers of certain raw materials, including precious metals such as palladium and platinum, used in exhaust scrubbing systems. Automakers are now looking at developing direct relationships with semiconductor makers, said Mark Wakefield, co-leader of AlixPartners' global automotive practice.
(Reuters) - The global semiconductor chip shortage will cost automakers $110 billion in lost revenues this year, up from a prior estimate of $61 billion, consulting firm AlixPartners said, as it forecast the crisis will hit the production of 3.9 million vehicles. The chip crunch has driven home the need for automakers to be proactive right now, and create supply-chain resiliency longer term to avoid disruptions in the future, the firm said on Friday. Automakers have in the past had direct supply agreements with producers of certain raw materials, including precious metals such as palladium and platinum, used in exhaust scrubbing systems. The more direct approach to securing precious metal supplies was launched after a supply and price disruption in that market.
Also wiggles out of exclusivity deal
Matthew Hughes Fri 14 May 2021 // 19:22 UTC Share
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Amid fears the global semiconductor crisis may last until 2023, AMD has opted to extend its purchase agreement with GlobalFoundries, giving it access to a greater proportion of the fabricator s output.
AMD disclosed the existence of the deal in an 8-K regulatory filing submitted to the SEC earlier this week. The company has committed to buy $1.6bn worth of 12nm and 14nm node silicon wafers between now and December 31, 2024. It did not disclose a breakdown of the costs nor the exact quantity of output it had secured.
Should AMD fail to meet its purchase obligation, it has committed to pay GlobalFoundries a portion of the difference between its planned and actual spend. AMD has also agreed to pre-pay for an unspecified portion of these wafers in advance.
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