Nov. 27, 2025 –
By Tanjeff Schadt
From 2021 to 2023, the semiconductor chip shortage cost the German automotive industry in excess of €100 billion, a considerable dent in the country’s overall economic output. However, with another similar crisis on the horizon, many companies are still only ready to respond with reactive measures. What is needed is a structured and methodical risk management strategy to properly confront the long-term and systemic challenge of repeated chip shortages.
Semiconductor chips are increasingly critical to the functioning of the automotive industry. A high-end electric vehicle, for example, requires around 3,000 chips. As electric cars grow in popularity, and become even more sophisticated and complex, the demand for chips will only rise. Indeed, forecasts suggest that the automotive semiconductor market will grow several times faster than global automotive sales over the next five years, reaching a market value of $140 billion.