Semiconductor Shortage Finally Eases for Automakers

After roughly two years of production disruptions, the global semiconductor shortage that hit the automotive industry beginning in 2021 showed clear signs of easing in the first half of 2023, according to analysis from S&P Global Mobility.

Production losses tied directly to chip shortages fell to around 524,000 units globally in the first half of the year, a sharp drop from the millions of units lost annually in 2021 and 2022. More predictable chip availability allowed automakers to stabilize production schedules and rebuild dealer inventories.

AUSMAH views the shortage as a turning point for the wider industry, prompting many manufacturers to rethink long-term component sourcing strategies rather than relying purely on just-in-time supply chains.