The chip shortfall is estimated to cost the auto industry $ 210 billion in lost revenue, according to the company. AlixPartners.
The pandemic hit many supply chains, but issues in the chip business hit the auto industry hard, with big car brands such as BMW and Volkswagen, Ford and General Motors to warn of the impact of chip shortages on production.
AlixPartners has nearly doubled its forecast for estimated losses since May, from $ 110 billion to $ 210 billion. It predicts that automakers will not produce about 7,7 million units in 2021, compared to the 3,9 million it originally forecast in May. The drop in production is mainly but not only due to the global shortage of chips.
The automotive industry was enticed because vehicles use cheaper chips, created with older production techniques for vehicle microcontrollers (MCUs).
Η Intel for example, it strives to achieve a 7nm technology. IBM is experimenting with 2nm technology. And while chip giant TSMC announced in July that it had achieved a 30% increase in MCU production, the automaker was less than 5% of TSMC's revenue in the first quarter of 1. The company predicted that the chip shortage would continue until 2021.
AlixPartners consultants predict a similar time frame for resolving the automotive chip shortage.
"Of course, everyone hoped that the chip crisis would have eased by now, but unfortunate events like the COVID-19 pandemic in Malaysia and ongoing problems elsewhere have made matters worse."He said Mark Wakefield, head of the automotive industry.
"Also, chips are just one of the many problems facing the industry including the lack of resin and steel but also the lack of manpower. There is no margin for error for automakers and suppliers at this time."
The lack of chips has led some nations and regions to reconsider how these supply chains can affect the wider economy. For example, the European Commission has the optimistic goal of increasing its market share from 9% today to 20% by 2030 as part of the push for digital dominance.
However, the President of the European Union Ursula von der Leyen acknowledged last week that the EU's goal was a "difficult task" that some believe would be impossible to achieve.