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Chip shortage in the automotive industry

Semiconductors a scarce commodity

The Covid 19 pandemic has exposed the vulnerabilities of global supply chains. Especially in the automotive sector, the shortage of microchips is still causing serious problems in automotive plants, as the complexity of the supply chain is often underestimated.

The global shortage of semiconductor components and the ripple effect of COVID-19 production stoppages are becoming a serious problem for automotive manufacturers and their electronics suppliers.

Due to the strong increase in production in the automotive sector, there is currently an undersupply of semiconductors in the market. Recent forecasts predict that the massively restricted supply situation for semiconductors could lead to sales losses of more than $14 billion in the first quarter of 2021 and around $61 billion over the course of the year.

Taiwan's leading semiconductor manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC), has been operating at capacity limit, producing most of the semiconductors for a wide range of industries: in the fourth quarter of 2020, TSMC accounted for 56% of semiconductor sales. Experts predict that the global shortage of semiconductor components will extend into the third quarter of 2021. Furthermore, a consolidation of the market is to be expected. In a first step, the acquisition of Dialog Semiconductor by Renesas Electronics for €4.9 billion was already announced at the beginning of this week.

POLARIXPARTNER has been successfully supporting its customers for years in cost optimization also in the area of electronics analysis and supply chain optimization.

In addition, with the POLARIXPARTNER calculation software (PXC) we offer you the possibility to calculate your CO2 emissions per component and process. Considered are among others the emissions for: Raw materials - Machines & tools - Space & energy requirements - Manufacturing processes - Operating materials - Transport & logistics - Overhead costs - Employee deployment.

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