Semiconductor Shortage To Cost Industry $210 Billion

Sept. 24, 2021—The ongoing global shortage of semiconductor chips will hit carmakers harder than experts had initially forecasted, the Detroit Free Press reported. 

A new report released Thursday by consulting firm AlixPartners said the chips crisis will cost the global auto industry $210 billion in revenues this year. That's almost double its estimate in May of $110 billion. 

“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the COVID-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said in a statement. 

In terms of production, AlixPartners forecasts that automakers will lose production of 7.7 million vehicles this year. In May, it had forecast a production loss of 3.9 million.