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