Understanding the EV Semiconductor Chip Sustainable Supply Chain Chip Shortage

Abstract

Semiconductor chips play a pivotal role in modern technology, with their significance heightened by the growing electric vehicle (EV) industry. As vital components powering electric powertrains, advanced driver-assistance systems (ADAS), and in-car infotainment, semiconductor chips have become the linchpin of the automotive industry's transformation. The escalating global demand for EVs has, however, triggered a semiconductor chip shortage, leading to systemic disruptions in the supply chain.

This study adopts a comprehensive approach to understanding the repercussions of the chip shortage within the automotive sector. Our method involves examining news articles about the semiconductor shortage, which worsened due to the COVID-19 pandemic. From this examination, a framework is created that explains the reasons for the shortage and its consequences. Through these analytical frameworks, the paper draws essential lessons and implications regarding the initiation, propagation, and enduring nature of systemic disruptions. The findings provide valuable insights into the complexities of supply chain dynamics, offering an in-depth understanding of how disruptions manifest and persist over time. As semiconductor shortages continue to affect various industries, including the automotive sector, these insights contribute to the ongoing discourse on the sustainable management of semiconductor chip supply chains. This paper aims to delve into the intricacies of the EV semiconductor chip sustainable supply chain, shedding light on the factors contributing to the chip shortage and exploring potential solutions for a resilient and sustainable future.