Automotive Semiconductor Average Lead Time Index

Semiconductors control a wide range of EV features from the engine to infotainment systems.

However, a combination of increased demand for consumer electronics during the pandemic, semiconductor chip manufacturing slowdowns due to US-China trade tensions, and supply chain disruptions have limited supply of these chips recently.

The shortage of semiconductor chips have resulted in the EU’s Chip Act, which is the European Commission’s ambitious US $47.5 billion proposal to help produce 20% of the world’s semiconductors by 2030.

Numerous semiconductor companies have already announced new chip production facilities across Europe.

Germany has also prepared a US $22 billion fund to support the development of its own local production in the coming years.