The Semiconductor Crisis

GROUP 11
21PGP157 – Pragya Kothari
21PGP183 – Rajat Bhandarkar
21PGP186 – Rhinab Aditya
21PGP190 – Ritik Jaiswal
21PGP197 – Sadiya Tabassum A
21PGP200 – Saim
Problem

statement
What has led to the global

semiconductor shortage and

what are the possible solutions

to this?
Struggles during the COVID'19 crisis

Lack of new capacity

Geopolitical tensions

Contract terms

Limited stock

5G rollout and overlapping chip

demand
 CURRENT SOLUTION:
The semiconductor shortage has become a very serious technological vulnerability and

security threat to major economies.

The following are the current fixes for the semiconductor shortage by few companies

DELOITTE: It is Deloitte's decision to increase its new manufacturing capacity to

unprecedented levels, expand its diverse regional capacity, overcome the whiplash

effect, achieve lean manufacturing, and move forward with digital transformation for

semiconductors.

McKinsey & Company: To increase transparency, many companies have set up separate

operations headquarters, where supply and demand data is combined. If capacity is less

than 5% of total production, an additional payment to speed up sheet production may be

useful.
Our Solution:
To solve this problem, you need to focus on a specific area.

Better visibility: Transparency is required throughout the

supply chain, from chip production to

inspection, packaging, and customer delivery

Identification of alternative

sources: To minimize risk, it is important to have multiple

contract suppliers in various locations, including

onshore.

Improve Business Network

Collaboration: By working with contract

manufacturers, distributors, logistics

service providers, and other trading

partners

Integrated business planning

The ability to track leading indicators, detect

process:
changes in supply and demand, and rapidly

model, replan, and execute alternative

strategies can create or destroy supply chain

risks or opportunities
Distribution and management of production

capacity and management strategy can help

manufacturers to reach short product life

cycles and short customer expectations.

Technology and Analytics can help reduce

human error-prone time and strategies by

matching deliveries and requests

The main institution performed several

steps to treat the current situation. Many

agencies have set up dedicated chat rooms

that combine the delivery and collection of

statistics to improve transparency

Increasing industrial strength and developing a roadmap that

prioritises AI while focusing on total business value

Along the value chain, companies may need to partially adapt

their present out-of-stock and just-in-time delivery techniques

Automobile manufacturers should reconsider their chip sourcing

strategy
Companies can also start investing in input supply chain resilience

on a case-by-case basis, depending on their dependency on crucial

components and the likelihood of input supply chain difficulties.

The cost of a new semiconductor

manufacturing plant will be between

$15 billion and $20 billion

AI helps accelerate research and

development by identifying ways

to reduce errors and flaws in

processes, accelerate revenue

growth, and reduce labor-intensive

iterations.

AI helps manufacturers assess risk

by predicting market changes and

seizing current opportunities.

Managerial Insights
Forecasting is necessary to manage this

crisis
Governments should increase funding

for local suppliers and manufacturers

Implementation of AI for accuracy and

precision in production
 Governments and businesses will have to
coordinate each others actions to overcome
crisis.
Semiconductor crisis was not a simple
solution as it involves both inventory and
supply chain

Conclusion
Changes so that these problems can be easily

addressed in
the future-
1. Current supply chain needs to be changed
2. Accurate forecasting for accurate demand
forecasting
3. Government funding for local suppliers and
local manufacturing units
Thank
you!!