XSD - Supply Chain Economics: Car Chip Shortage

• Supply chain managers worry about a great many risks. Economic changes should now be added to the list.
• The automobile industry’s chip shortage is a shining example of a predictable economic risk that caught purchasing managers unaware.
• Before the pandemic, semiconductor manufacturers were stressed in their ability to deliver chips for a variety of reasons including production problems at Intel and U.S. restrictions on Chinese manufacturers’ sales.
• When the pandemic hit, the automobile industry girded for recession and cut back on orders to their suppliers.

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