The semiconductor crisis is affecting the car industry: specialists predict

The semiconductor shortage that paralyzed production in 2021 is unlikely to subside until 2023, said a McKinsey analyst.

The lack of car chips is unlikely to be reduced this year, said an expert at consulting firm McKinsey, despite commitments to increase the capacity and strength of carmakers and tier 1 suppliers to engage in longer contracts. with semiconductor manufacturers.

“There could be some improvement in 2023, but I don’t expect any major change in 2022,” said Ondrej Burkacky, a senior partner at McKinsey, which runs the company’s global semiconductor industry, before launching a report on the automotive industry and the chip market until 2030.

Burkacky said about 5 million vehicles planned to be built in 2021 could not be assembled due to the chip shortage, and another 10 to 15 million were affected, meaning they were built without certain features or used modules. replacement.

Crisis but there was also profit

However, some car manufacturers have recorded record margins as they have prioritized the production of more expensive and more electrified models.

Stellantis, for example, said the deficit cost 20% of planned production – and had a car group margin of 11.8%. Richard Palmer, Stellantis’ chief financial officer, said the deficit had peaked in the third quarter of 2021.

Some auto executives have said that the chip shortage – largely due to increased demand from other sectors such as consumer electronics and computers – which have left the car industry last, will be somewhat mitigated in the second half. of the year 2022.

At the same time, growing demand for semiconductors in all sectors that began in 2020 will continue, Burkacky said. In value, an industry that now generates $ 600 billion in revenue will grow to $ 1 trillion by 2030.

The auto industry, which now accounts for 8% of the semiconductor market in value, will be the fastest growing area, with an annual growth of 13 to 15% by 2030, he said – and will have 14% of the market by 2030.