📊Executive Summary

The article discusses the significant increase in microchip lead times, which have reached a record 22 weeks due to power reduction mandates imposed by the Chinese government. This situation has resulted in temporary shutdowns of several chip manufacturing facilities, leading to a global supply chain bottleneck. The impact of these power cuts has been felt across various sectors, particularly in the automotive industry, which is projected to incur substantial costs due to the ongoing chip crisis. Industry leaders anticipate that the shortage will persist into 2022, despite some improvements expected later in the year as new fabs come online. Procurement teams should prepare for extended lead times and potential supply shortages in the coming months....