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. 2022 Dec:113:102720.
doi: 10.1016/j.omega.2022.102720. Epub 2022 Jun 29.

Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry

Vinay Ramani  1 , Debabrata Ghosh  2 , ManMohan S Sodhi  3
Affiliations

Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry

Vinay Ramani et al. Omega. 2022 Dec.

Abstract

Covid-19 has allowed us to study systemic disruptions that impact entire industries. This paper explores how disruptions start, propagate, and continue over time by examining the semiconductor chip shortage faced by the auto industry during the years following Covid-19 in 2020. First, we carried out a thematic analysis of 209 pertinent newspaper articles. The analysis resulted in a thematic model of such disruptions with the interplay of various factors leading to the prolonged disruption to the auto sector. Second, we present the results from a stylized supply chain planning model run at different times to show how disruptions propagate to the auto and other sectors, causing systemic shortages. Overall, we contribute to the supply chain risk literature by focusing on system disruptions impacting entire industries versus normal disruptions affecting a particular company's supply chain.

Keywords: Automotive; Chips shortage; Covid-19; Electronic industry; Systemic disruption.

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Figures

Fig. 1
Fig. 1
A thematic model of the systemic disruption to the auto industry, particularly in relation to shortage of semiconductor chips.
Fig. 2
Fig. 2
Stakeholders in the supply chain chip shortage, as identified through thematic analysis.
Fig. 3
Fig. 3
Causes of semiconductor chip shortage - themes and sub-themes.
Fig. 4
Fig. 4
Effects of semiconductor chip shortage - themes and sub-themes.
Fig. 5
Fig. 5
Supply Chain Schematic.
Fig. 6
Fig. 6
Demand Data.
Fig. 7
Fig. 7
Backlog and production quantities for all scenarios.
See this image and copyright information in PMC

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