Car chip shortage will lead to supply chain restructuring

The well-known consulting firm
McKinsey recently pointed out that because the shortage of automotive chips is
challenging to solve in the short term, and in the face of continuous supply
chain turmoil, vehicle companies should actively consider adjusting their
business strategies.

According to McKinsey\’s analysis,
the previously popular just-in-time manufacturing (JIT) model is challenging
to adapt to the status quo of semiconductor supply. The interval between
ordering and delivering semiconductor components is at least four months. If
the fab has no excess capacity, it may even take 18 cycles. In
January, OEMs had to order semiconductor components with higher output than the
actual output to keep their inventories at a safe level. The excess orders
formed a \”bullwhip effect\” in the entire industry chain, further
aggravating mature process nodes\’ already tight semiconductor components.
Supply shortage.

To this end, some OEMs and Tier 1
suppliers have established cross-departmental teams consisting of procurement,
supply chain management, and sales personnel to open up the flow of
information within the enterprise and solve short-term supply problems.

In addition, McKinsey suggested
that OEMs formulate a more complete and comprehensive mid-and long-term
technical plan, refine their semiconductor device needs, and conduct targeted
product development based on this plan, such as expanding the list of certified
products and improving discrete The versatility of the device on different
models.

In the short term, McKinsey
recommends strengthening the digital transformation of the supply chain,
improving the transparency and efficiency of information flow between OEMs and
suppliers, and formulating better business strategies through data mining to
achieve dynamic optimization of supply and demand matching.

McKinsey also suggested that
based on shared long-term demand planning, OEMs can jointly invest in
mature process fabs with suppliers or design semiconductor components together to share financial costs and risks, improve profit margins, and apply
advanced technologies at an early stage.

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