📊Executive Summary

The global semiconductor shortage is projected to cost the automotive industry $110 billion in 2021, nearly doubling previous estimates due to significant disruptions. Key events include a winter storm in Texas that forced major chipmakers like Samsung, Infineon, and NXP to temporarily shut down their fabs, and a fire at Renesas Electronics in Japan that damaged critical manufacturing facilities. These disruptions are expected to prevent the assembly of 3.9 million vehicles, exacerbating the industry's recovery from the pandemic. AlixPartners warns that carmakers must adapt their operations as they no longer hold the same leverage in negotiations with suppliers, shifting from a just-in-time model to a more resilient approach....