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Automotive Chip Drought Alters OEM/Supplier Balance of Power

The automotive chip shortage has put semiconductor suppliers in the driver’s seat — at least for now. But automakers are wising up. They are rethinking relationships with semiconductor suppliers, while redrawing their next-generation vehicle architectures.
Automotive Chip Drought Alters OEM/Supplier Balance of Power
Automotive Chip Drought Alters OEM/Supplier Balance of Power

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By Junko Yoshida

What’s at stake?
With last year’s chip shortage expected to linger well into 2022, any quick fix is fantasy. Automotive OEMs’ dramatic rethink of next-gen architectures extends to their IC partners, which face new expectations for interchangeable platforms and improved visibility into their business. OEMs are spending massively, and chip designers want that money. The questions come down to the accommodations chipmakers are willing to make, and how creative their solutions will be, as they pursue tighter OEM relationships.  


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