Strategic Semiconductor Management
From shortage to competitive advantage
This strategy paper stresses the paradigm shift that industries such as automotive, industrial goods, or consumer electronics need to consider based on the semiconductor supply chain disruptions they recently faced.
In the past, OEMs and suppliers had not focused sufficiently on semiconductors. This perception changed with the beginning of the COVID-19 crisis and the resulting lockdowns. All industries were affected, however the automotive sector was hit particularly hard. During the 2021 lockdowns, automotive OEMs canceled supply orders based on decreasing demand for mobility. In parallel, the consumer electronic sector experienced a particularly high demand. When the situation recovered, semiconductor manufacturers were already fully booked. As a result, rising demand of the automotive industry could not be served.
- Complexity management with the aim of a semiconductor portfolio and volume bundling is mandatory for more control with respect to technology and purchasing
- Leading companies establish a semiconductor ecosystem around their organizations to enable collaboration, direct access to stakeholders, and proper decisions
- OEMs’ next-level capabilities must include the customization of their own semiconductors
- The key to long-term supply security and profit is direct sourcing of semiconductors. Joint development partnerships with semiconductor suppliers lead to greater technological and economic advantages