According to a new report, the global shortage of semiconductors has had a negative impact on many technology industries, and the automobile industry is one of the worst.
Consulting firm AlixPartners predicts that a shortage in this segment will cost the global auto industry $210 billion in 2021 alone. With shortages continuing around the world, analysts nearly doubled their forecasts by $110 billion in lost revenue in May.
Accordingly, this will result in a loss of 7.7 million vehicles in 2021. A significant increase from the 3.9 million units projected in the May report.
“Of course, everyone was hoping the chip crisis would be eased now, but unfortunate events such as the COVID-19 quarantine in Malaysia,” Mark Wakefield, global automotive and industry leader at AlixPartners said:
The pandemic has forced automakers to cut production due to reduced availability of chips, but Wakefield insists this is not the only issue to be considered. It is also affecting the resin and steel industries and the workforce.
Today, vehicles are equipped with a variety of electronic devices to experience the most complete driver experience—central displays and automotive technology, among which are all chips. “There is currently no room for error for automakers and suppliers,” Wakefield notes. “They have chosen only the best. options.” However, IDC believes that the semiconductor shortage will end by mid-2022, while production is expected to increase in 2023.
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The shortage of chips has hit the auto industry hard and is expected to cost $210 billion in 2021.