Global Semiconductor Shortage Triggering Obstructions and Production Delays


  • Arnab Chakraborty


The global COVID-19 pandemic served as an enormous shock that severely
disrupted the delicate supply-demand balance in semiconductor supply chains.
Lockdowns and travel restrictions temporarily halted production at overseas
chip fabrication facilities. This reduced supply was misaligned with a
sudden spike in semiconductor demand as consumer electronics purchases
surged while working and learning from home became widespread. However,
the automotive industry had drastically scaled back chip orders earlier
in the pandemic as car sales plunged. This mismatch resulted in acute
semiconductor shortages for automakers as production rebounded quicker
than anticipated amidst chip supply rigidity. The research analyzed this complex
interplay through extensive literature review, data analysis, and forecast
The study synthesized perspectives from prior work examining supply
chain vulnerabilities and automotive industry impacts. A thematic analysis
identified key drivers including pandemic disruptions, supply-demand mismatches,
manufacturing concentration risks, automotive priority gaps, and
macroeconomic shifts. Financial impacts on major automakers were also reviewed.
An original dataset on country-level automotive production over
22 years provided empirical insights. Descriptive analysis evidenced dramatic
declines in 2020 output across all major producing economies from
pandemic disruptions. China maintained production leadership despite the
crisis. Sophisticated forecasting using LSTM neural networks was conducted
to predict recovery timeframes and enhance preparedness.
Key implications highlighted supply chain resilience strategies and collective
action as imperative for managing systemic shortages. The deepening
necessity and complexity of semiconductor supply chains poses risks
from over-optimization without agile buffers. For the automotive industry,
rethinking innovation roadmaps, increasing visibility, strategic stockpiling,
and creative engineering is needed to navigate disruptions. The research limitations
around constrained forecasting, conceptual materials analysis, aggregated
data usage, and geographically limited literature review were acknowledged.
Recommendations included addressing these gaps through
expanded techniques, proprietary data access, and globally diverse information
sources. Overall, the study contributed timely perspectives to aid stakeholders
across electronics supply chains seeking to enhance resilience while
upholding rapid innovation. The insights generated can help the automotive
and semiconductor industries be better positioned to navigate future crises.




How to Cite

Chakraborty, A. . (2023). Global Semiconductor Shortage Triggering Obstructions and Production Delays. Global Journal of Business and Integral Security. Retrieved from