📊Executive Summary

The article discusses a significant shift in the automotive industry away from the Just-In-Time (JIT) inventory model due to the global chip shortage, which has cost the sector $110 billion. Major automakers like Ford and Toyota are now planning to stockpile critical microelectronics to prevent future disruptions. NXP Semiconductors has noted a change in procurement strategies among automotive clients, with a focus on increasing inventory levels and securing medium-term supply contracts. This shift is expected to impact small to midsize OEMs and CMs, as the semiconductor supply chain continues to be strained, with predictions that shortages will persist into 2023....