Semiconductor Shortage and Impacts: Automotive Industry

The automotive industry has been struggling with multiple commodity shortages which began during the COVID-19 pandemic and have continued since then. The automotive supply chain is currently being impacted due to the lack of nickel, subsequent rising costs, and the ban on nickel export by Indonesia and Russia’s invasion of Ukraine. Furthermore, there is a limited neon gas supply which is sourced mainly from Ukraine that is threatening the recovery of the semiconductor industry, with shortages expected to extend past 2023. These shortages have caused many leading carmakers to shut down or slow down production in the impacted regions.