Title: Why We’re in the Midst of a Global Semiconductor Shortage
Headings: Why We’re in the Midst of a Global Semiconductor Shortage
Supply chain
Why We’re in the Midst of a Global Semiconductor Shortage

Content: Why We’re in the Midst of a Global Semiconductor Shortage
Supply chain
Why We’re in the Midst of a Global Semiconductor Shortage
Weak links in supply chains have underscored the importance of rigorous supply chain management. by
Bindiya Vakil
and
Tom Linton
by
Bindiya Vakil
and
Tom Linton
February 26, 2021
Traimak_Ivan/Getty Images
Summary. Shortages of semiconductors that have been hurting manufacturers of automobiles and other products illustrate the need for companies to ensure that their supply chains are resilient. These shortages, on top of pandemic-related supply disruptions,...
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With the U.S. economy expected to gather steam this year as more and more Americans are vaccinated, one of the biggest cautions to consider is whether supply chains will be able to keep up with growing demand. Indeed, concerns about disruptions to supply chains and shortages that have occurred during the pandemic sparked the Biden administration to order a review of critical areas. A major example is semiconductors. Lead times for many semiconductors are one year out right now, and these devices are in just about everything we use. Business and financial media have detailed how the shortage of semiconductors has caused production cutbacks in the automotive industry: Ford, Toyota, Nissan, VW, and Fiat Chrysler Automobiles (now a part of Stellantis) are among global carmakers that have scaled back output. Other carmakers have announced they’ll likely miss their 2021 targets.