- The COVID pandemic has disrupted the semiconductor supply chain forcing automakers to scale back production.
- Electrical components account for 40% of the value of new vehicles.
- At the pandemic’s onset, chipmakers slashed production in response to widespread factory shutdowns.
- However, the faster-than-expected recovery has increased semiconductor demand from automakers and consumer electronics manufacturers.
- The problem is heightened by Taiwan Semiconductor controlling 56% of global chip manufacturing.
- Few expect the bottleneck to clear before this summer, potentially costing the auto industry $61B in lost 2021 revenues.
