The senators write: “All sectors of the economy need access to semiconductor chips, however we ask that the auto industry be recognized as the significant semiconductor consumer it is in any engagement.”
Considering the matter for Digital Journa, is Supplyframe’s CMO Richard Barnett, who is a veteran semiconductor supply chain expert.
Barnett has been pondering on what has been driving the semiconductor shortage. He is also attempting to develop a strategy in terms of what the automotive sector and other industries can do to lower their risk of component shortages and build resilience into their products.
Barnett explains what has been happening and why: “Semiconductor shortages are impacting a long list of car makers including Chrysler, Ford and Toyota. The semiconductor shortage is due to the fact that these same semiconductors used in cars are also employed in consumer electronics and enterprise computing.”
This situation is precarious because: “Businesses seldom have a buffer supply of semiconductors to address demand spikes; and it takes a long time to replenish the semiconductor supply.”
However, there is a short-term solution while the Biden Administration considers what to do next, says Barnett. He proposes: “But manufacturers in the automotive sector and any industry that uses semiconductors and electronic components can lower their risk from component shortages and build resilience into their products by using new forms of intelligence that provide visibility into the supply chain.”