Chip Shortage Costs Global Automakers Over $200 Billion

The global semiconductor shortage, which began disrupting production in early 2021, cost the automotive industry more than $200 billion in lost revenue for the year, with roughly 11 million fewer vehicles built worldwide than planned.

Major manufacturers including Ford, Toyota, Honda and Nissan were forced to idle plants and cut production targets throughout the year. Ford focused available chip supply on its higher-margin truck lineup, while Volkswagen and other automakers began signing direct supply agreements with chipmakers to secure future capacity.

AUSMAH continues to monitor developments in global semiconductor supply chains, recognizing that resilient component sourcing has become just as important to modern vehicle production as the design of the vehicles themselves.