Semiconductor shortage to cost automakers $ 110 billion in 2021


The current semiconductor shortage will cost the global auto industry $ 110 billion in lost revenue this year, estimates AlixPartners, up more than 80% from the consulting firm’s estimate of $ 61 billion. January.

The production of 3.9 million vehicles will be lost in 2021 due to the shortage, AlixPartners predicts.

“The pandemic-induced chip crisis has been exacerbated by events that are normally only roadblocks for the auto industry, such as a fire at a key chip manufacturing plant, extreme weather conditions in Texas and a drought in Taiwan, ”Mark Mark Wakefield, global co-leader in automotive and industrial practice at AlixPartners, said in a press release. “But all of these things are now major issues for the industry – which, in turn, has led to the need to build long-term supply chain resilience.”

Adds Dan Hearsch, general manager of the automotive and manufacturing practice of AlixPartners: “There are up to 1,400 chips in a typical vehicle today, and that number will only increase as the industry continues to move forward. towards electric vehicles, increasingly connected vehicles and, possibly, autonomous vehicles. So this is really a critical issue for the industry.

“But the top priority for businesses right now is to mitigate as much as possible the short-term effects of this disruption, which can include everything from renegotiating contracts to managing lender and investor expectations. The important thing is to be proactive and to be well armed with good information and analysis. “

In the United States, the shortage provoked the Biden administration. order one 100 day review national supply chains, CNBC reported. About $ 50 billion president By Biden $ 2 trillion infrastructure proposal set aside for the US semiconductor industry.

Ford alone expects to lose 1.1 million units of expected production this year due to the shortage, including a reduction of up to 50% in the second quarter, CEO Jim Farley said in late April during a conference call with financial analysts. The impact on production will continue to be felt well in the second half of 2021 and could extend until 2022, he said.

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