Nearly three-quarters of automotive manufacturers said they have had to remove popular features from their offerings due to the shortage of semiconductors, finds survey
May 2023 - Industrial
Nearly three-quarters of automotive manufacturers said they have had to remove popular features from their offerings due to the shortage of semiconductors: A survey of business leaders working in either semiconductor manufacturing/development, semiconductor distribution, or automotive, has revealed that 72% agree that automotive manufacturers have had to remove popular features from their offerings due to the shortage of semiconductors. This compares to 18% who said they disagree.
Indeed, supply chains which have already been disrupted due to Covid-19 have faced further disruption due to the war in Ukraine, with both Russia and Ukraine being major suppliers of neon and palladium, which are two of the materials required in semiconductor manufacturing.
The Automotive Semiconductor Survey by the Gerson Lehrman Group (GLG) polled 60 executives in the United States, France, Germany, Italy, Spain, and the U.K at various seniorities ranging from C-level to manager.
When asked how much the agreed with a range of statements, the survey found that 73% agree that automotive production lines have had to close due to the shortage of semiconductors (compared to 13% who disagree), while 65% agreed that the shortage of semiconductors has impacted Electric Vehicle production more than internal combustion engines (ICE) vehicle production (compared to 20% who disagreed).
The research also found that 45% of the executives who took part in the survey reported that microprocessor control units (MCUs) were impacted most severely, which says GLG could be a result of "both the forces affecting the supply chain and the rise of electric vehicles, which is fuelling a growing demand for MCUs worldwide".
The survey also found that when it comes to a timeline for recovery the CEOs surveyed were divided in their opinion. Around half (47%) said they expected to see the industry recover in the first or second half of 2023, while almost half (47%) said they believe the recovery will be in 2024.
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