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Chip shortage expected to cost Auto industry $110 billion in revenue in 2021

According to consulting firm AlixPartners, the semiconductor chip shortage is estimated to cost the global automotive industry $110 billion in revenue in 2021. The projection is an increase of 81.5 percent from a late January forecast of $60.6 billion. For areas like infotainment systems and more fundamental parts such as steering and braking, semiconductor chips are extremely significant components of new car. Experts claim a vehicle may have hundreds, if not more, of semiconductors depending on the vehicle and its choices. Higher-priced vehicles with advanced safety and infotainment systems, including various chip styles, have a much better than a basic model. Numerous factors contributed to the rise, including a fire at a chip supplier’s plant near Tokyo and weather-related bottlenecks in the automotive supply chain.

Source: CNBC

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