COVID-19 had already caused a titanic disruption to global semiconductor supply chains when Russia’s invasion of Ukraine dealt them another serious blow. Russia and Ukraine are major providers of two of the most important materials in semiconductor manufacturing: neon and palladium. Manufacturers have few alternative sources for these materials.
Such challenges have rolled down to auto manufacturers. In January 2023, eeNews Europe reported that “crippling” chip shortages in the U.K. forced a 9.8% decline in car production in 2022.
Survey and Panel Demographics
To better understand how business leaders regard the impact of these factors on their industry, GLG surveyed 60 executives in the United States, France, Germany, Italy, Spain, and the U.K. Respondents held a range of titles, from C-level executive to manager, and industries fell into three categories: semiconductor manufacturing/development, semiconductor distribution, and automotive.
Semiconductor Industry Impact
The results of GLG’s Automotive Semiconductor survey showed that the impact of semiconductor supply chain challenges is currently felt across multiple industry categories. Nearly half (45%) of the executives responding to the survey said microprocessor control units (MCUs) were most affected, which could be a result of both the forces affecting the supply chain and the rise of electric vehicles, which is fueling a growing demand for MCUs worldwide.
Most respondents indicated that supply chain challenges were having a significant impact on auto manufacturers. Nearly three-quarters said automotive production lines were closed or popular features were removed from their offerings because of the challenges. A slightly smaller number (65%) told us that the challenges were affecting the production of electric vehicles more than internal combustion engines (ICE).
Expected Recovery
The CEOs we surveyed were relatively split in their opinions on the timeline for recovery. Just under half (47%) of our respondents told us they expect the industry to recover in the first or second half of 2024, while 41% told us they expected recovery this year.
Conclusion
The GLG Automotive Semiconductor survey shows that supply chain issues have had a significant impact on the industry. In addition to the data points above, the survey provides insight into the common cause of the semiconductor shortages affecting the overall industry vs. the automotive industry, the car domain functions impacted by the shortage, the top constraints creating a bottleneck for chip output, and more. The research also demonstrates executives’ realization that the shortage will continue, at least in the short term, and that they are planning to find a way to prosper during this time.
Click to See Our List of Other Network Surveys
About GLG Network Surveys
GLG’s Network Surveys administer research on market-moving topics and trends, surveying relevant subject-matter experts. Each survey focuses on a specific industry, and respondents have in-depth expertise about the latest developments in that industry. To ensure that the survey’s focus is relevant to the panelists, our Network Surveys team partners with a GLG expert with deep industry knowledge to write the questionnaire. GLG currently runs approximately 12 Network Surveys every month.
The standard deliverables for our Network Surveys include:
- 1 x individual responses (“raw data”) in Excel
- 1 x PPT report with aggregated data
- For selected topics: executive summary with key takeaways and conclusion
- For selected topics: in-depth PowerPoint report of survey findings presented by the Network Member via webcast (optional)
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