Transport Industry Faces Longer Haul Impact of Semiconductor Shortages

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3Q 2021 | IN-6239


A Historic Confluence of Factors


The global semiconductor chip shortage continues to affect production across multiple industries, including commercial transportation. Since early 2021, the global supply has been insufficient, an issue exacerbated by a fire and historic weather conditions in Austin, Texas, pandemic shutdowns in multiple APAC countries, and the worst drought in Taiwan in over 50 years. The shortage has been complicated by vehicle OEM’s greater than expected requirements, which were drastically reduced in Spring 2020, in some cases through force majeure. As demand grew quickly and exponentially in late 2020, significant capacity had been filled, including from FAMGA (Facebook, Apple, Microsoft, Google, and Amazon). Companies including TSMC, Intel, and Samsung have committed to additional capacity, yet the time to bring new fabs online continues to impact current industry shortages, potentially into 2023.

No Fast Fixes


As the demand for chips continues to exceed supply into the second half of 2021, the vehicle industry is expected to be hi…

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