The “Semiconductor Crisis” as a Result of the COVID-19 Pandemic and Impacts on the Automotive Industry and Its Supply Chains

Abstract

In the first half of 2020, the coronavirus pandemic led to a drastic slump in the automotive industry, which was replaced by a surprisingly rapid growth in demand in the fall of 2020, and consequently led to the current shortages in microelectronic products. The prospect of an equally rapid economic recovery in the automotive industry is still threatened by supply bottlenecks for raw materials and key components, foremost for semiconductors. The so-called ‘semiconductor crises’ show exemplarily the overlapping of short-term supply chain disruptions with long-term structural features of the semiconductor industry. The combination of both is preventing that the supply situation in the automotive industry will improve quickly. First in this paper, the reasons for and respective effects of the crisis on the automotive industry are investigated by a quantitative market analysis. Second, specific strategic measures and options of automotive Original Equipment Manufacturers (OEM) and suppliers in Germany to cope with the situation and increase resilience in future supply chains are described by the means of qualitative expert interviews. By that, the paper helps in understanding the actual situation in the automotive industry, on the one hand, and contributes to the field of strategic supply chain and risk management with a focus on practical implications on the other hand. The results aim to support political stakeholders as well as small and medium sized enterprises to prepare themselves for future developments in the automotive market and changes in manufacturer–supplier relationships due to the transformation to new powertrain technologies and digitization.

Supply chain resilience as a system quality: survey-based evidence from multiple industries

“…The COVID-19 pandemic unveiled deficiencies in the state of preparedness within numerous supply chains (van Hoeck, 2020;Rozhkov et al, 2022). This lack became evident in the 2020 semiconductor shortage, during which numerous companies in the semiconductor consumer and automotive sector encountered challenges in the assembly of their products due to the unavailability of microelectronics stemming from a combination of lockdown-related disruptions and the erratic fluctuations in demand (Frieske and Stieler, 2022). While most industries applied standard measures, such as production capacity reduction, factory shutdowns and product mix changes, proactive adaptation through stockpiling, product mix IJPDLM 54,1 flexibility and even the production of their own chips were missing (MacCarthy et al, 2022).…”

Optimization of supply and demand matching in supply chain coupling mechanism

“…There is undoubtedly a greater need for chips in electric vehicles than in fuel-powered ones. On the one hand, semiconductor components already account for about 35% of automobile manufacturing costs, and this figure may rise to 50% by 2030 [14]. On the other hand, while the demand for automotive chip may total 100 million, this may not even come close to one-tenth of smartphone chip orders.…”

Can Public Blockchains Mitigate Semiconductors Supply Chain Disruption?

“…It focused on the effects of COVID-19 on the semiconductor and automotive industries, as well as the impact of rising crude oil prices on the semiconductor industry. This research [ 39 ] examined the causes and effects of the auto industry crisis using quantitative market analysis. Second, qualitative expert interviews are described.…”