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Automakers cannot afford to be complacent on semiconductors

The automotive industry needs semiconductor supply chains and partnerships that can navigate an undulant market. By Will Girling

The global semiconductor shortage was a defining strategic obstacle for the 2021/22 automotive industry, which accounts for 12.5% of overall chips produced at a value of US$660bn. Fuelled by an accelerated shift to electric vehicles (EVs) from several prominent automakers, stock levels have subsequently struggled to meet demand. According to value chain intelligence platform Supplyframe, the shortage cost the industry US$210bn in lost earnings in 2021, with OEMs like Toyota conceding that its 2022 production output is unlikely to meet initial targets.

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