The Engineer Q&A: Automotive semiconductor shortage

The Engineer put these questions to a range of experts for answers and potential solutions.

Ian Nethercot, MCIPS, supply chain director, Probrand

Sarah Riding, partner at Gowling

Matthew Walters, head of Consultancy Services at LeasePlan UK

Scott White, CEO at PragmatIC Semiconductor

Simon Beresford-Wylie, CEO at Imagination Technologies

SR: Surging demand and disrupted supply has led to a severe chip shortage. Supply was diverted away from the automotive sector to the technology sector by the boom in demand for personal electronic devices during the Covid pandemic and with tech companies paying more for semiconductors, available supplies went there first. This has been exacerbated by other situations including the drought in Taiwan affecting manufacturers. This volatility is impacting production schedules and ability to meet global demand for vehicles. A rush on semiconductors following lockdown was faster than expected and the chipmakers have not been able to scale up quickly enough to meet demand.

MW: Demand for semiconductor-reliant technology is increasing, but supply is struggling to keep up. There are no quick fixes, the SIA claims up to a 26-week lead time for semiconductor factories to deliver the orders to customers.