Sep 2021

Chip Shortage will Cost Industry $210B

Consulting firm AlixPartners said Thursday that the ongoing semiconductor chip shortage will cost the global automotive industry $210 billion this year, a greater revenue loss than previously thought.

That figure is up considerably from the firm’s May forecast, in which it estimated a loss 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.