There needs to be greater coordination between the automotive and electronics industries to avoid future shortages in supply, say experts from Bolloré, DB Schenker, DHL and Kuehne + Nagel, along with analysts of the semiconductor sector.
When the Covid pandemic struck in 2020 vehicle production stopped abruptly and orders for semiconductors were cancelled at short notice. At the same time, the demand for electronic devices went up and semiconductor makers concentrated on supplying the reliable electronics sector.
Reliable demand falls in line with how semiconductor fabrication facilities (fabs) work. They need to run with 90%+ utilisation rates if a return on the considerable investment in facilities and equipment is to be achieved. That means secure and consistent orders.
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