Persistent Chip Shortage Forces Tier 1 Suppliers and OEMs to Jointly Build Supply Chain Resilience
Category: Company News
Although considerable time has passed since the global chip crisis began, its impact on the automotive parts industry continues. Tier 1 suppliers, being upstream of vehicle manufacturing, bear the brunt of the impact, with production halts and rising costs due to the chip shortage testing their profitability.
To meet the challenge, major Tier 1 suppliers like Denso and ZF are adopting multi-pronged strategies. On one hand, they are establishing direct strategic partnerships with chip manufacturers, even making joint investments, to lock in long-term production capacity. On the other hand, they are redesigning components to use more common or readily available chips as substitutes for scarce models. Additionally, they are enhancing supply chain transparency through more refined inventory management and demand forecasting systems.
More importantly, the relationship between OEMs and suppliers is being reconfigured. The previous "Just-In-Time" production model has proven extremely fragile under major shocks. Now, OEMs are more willing to share production plans with core suppliers and even co-invest to secure the supply of key chips. This shift from "gaming" to "symbiosis" signals the industry's move towards building a new, more resilient, and collaborative supply chain system.
Next: Smartization Drives Explosive Growth in the Vehicle Sensor Market
Guangzhou Xinkangrui Electronic Technology Co., Ltd.
No. 17, Building 7, Changmatou Auto Parts City, Qiaokou District, Wuhan City, Hubei Province
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