Chip Shortage - S12

practices to help mitigate future supply
chain risk and disruption. In the near
term, automotive manufacturers and
suppliers responding to the Center's
survey say they are navigating the crisis
by prioritizing manufacturing in areas that
are in highest demand. More than a third
(38 percent) also say they are shutting
down manufacturing in response to the
shortage, perhaps creating additional
economic uncertainty in the near term
because some automotive manufacturers
announced temporary layoffs in April and
May.vii
To further help address the chip
shortage, more than a quarter of
automakers and suppliers also report
having successfully found alternate
sources of semiconductor supply.
However, while those sourcing decisions
may help address short-term needs, most
respondents representing automakers
and suppliers also express concern with
longer-term implications, including the
ability for those chips to meet " auto
grade " operating requirements, cost and
potential quality issues down the road.

" Finding alternative chips in many
cases is quite complicated due to
long lead development and
unfortunately the number of global
players is limited and again their
capacity is limited due to this
crisis. "
- Survey respondent

Copyright 2021 ©
Automotive News
All rights reserved.

Actions automakers and suppliers are taking
to help reduce the impact of the chip
shortage on production and organizations

46%

PRIORITIZED MANUFACTURING TO FOCUS
ON PRODUCTS WITH HIGH DEMAND

38%

SHUT DOWN MANUFACTURING

32%

PRIORITIZED MANUFACTURING TO FOCUS
ON PRODUCTS LEAST IMPACTED

26%

AUTOMAKERS AND SUPPLIERS
THAT HAVE FOUND ALTERNATE
SOURCES OF SUPPLY FOR CHIPS

Most-cited concerns automakers and suppliers
have with chips sourced from alternate sources

65% 62% 60%
CAPABILITY

COST

QUALITY

Source: Automotive News Research & Data Center

12



Chip Shortage

Table of Contents for the Digital Edition of Chip Shortage

Chip Shortage - S1
Chip Shortage - S2
Chip Shortage - S3
Chip Shortage - S4
Chip Shortage - S5
Chip Shortage - S6
Chip Shortage - S7
Chip Shortage - S8
Chip Shortage - S9
Chip Shortage - S10
Chip Shortage - S11
Chip Shortage - S12
Chip Shortage - S13
Chip Shortage - S14
Chip Shortage - S15
Chip Shortage - S16
Chip Shortage - S17
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