CEU Electronic Theses and Dissertations, 2024
| Author | Aoun, Karim |
|---|---|
| Title | The Car Chip Shortage: A Mirror To Global Economic Vulnerabilities |
| Summary | This thesis explores the global semiconductor chip shortage that disrupted the automotive industry and its implications for economic vulnerabilities and supply chain resilience. The semiconductor industry, after enduring challenges in 2023, is projected to recover, with sales expected to increase by 16.6% to nearly $617 billion by 2024, underscoring its critical role in technology, particularly in automotive and AI sectors (Deloitte, 2024). Originating with the COVID-19 pandemic, the study examines the shortage's widespread effects, highlighting the complex interdependencies and the fragile balance of global supply and demand. The research employs qualitative analysis and reviews literature to investigate several aspects of the shortage. First, it explores the causes of the semiconductor shortage. Next, it examines the direct impact on the automotive industry. Finally, it considers the broader implications for global economic stability and supply chain management. The findings reveal that the just-in-time manufacturing model, coupled with a heavy reliance on a limited number of semiconductor suppliers, exacerbated the industry's vulnerability to disruptions. In response, the automotive industry's strategic adaptations—ranging from supply chain diversification to increased local production efforts—highlight the pressing need for enhanced resilience against such systemic shocks. Furthermore, the thesis evaluates responses from governments and industries aimed at mitigating effects and fostering long term resilience. In addition, this research contributes to research on global supply chain vulnerabilities by offering insights into the necessity of strategic planning, flexibility, and diversification in supply chain management. It advocates for a multifaceted approach to resilience, emphasizing the importance of predictive analytics, strategic stockpiling, and international cooperation to navigate future challenges in an unpredictable global market. By examining the semiconductor chip shortage through the lens of global economic interdependencies, this thesis underscores the imperative for adaptive strategies that ensure economic stability and the robustness of global supply chains in the face of unprecedented disruptions. |
| Supervisor | Akbar Yusaf |
| Department | Undergraduate Studies BA |
| Full text | https://www.etd.ceu.edu/2024/aoun_karim.pdf |
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