Poor risk management or external factors, what caused the semiconductor shortage within the automotive industry?

Abstract

The purpose of this study is to investigate if and how risk management within the automotive industry has contributed to the outcome of semiconductor shortage, which has been affecting the industry since the beginning of 2020. The thesis is conducted as a qualitative interview study where data is gathered through interviews with people of interest, such as experts in the field of risk management, professors in nanotechnology and persons who work at automotive companies that have been directly affected by the semiconductor crisis. The results of the study show us that the outcome of the semiconductor crisis might depend on other factors than deficient risk management such as natural disasters, the pandemic and the fact that there is a very limited number of manufacturers. The risk management conducted by companies today and during this shortage have mainly had mitigating measures to survive rather than being able to foresee or prevent such a shortage. Furthermore, all interviewees agreed that it was not only poor risk management that has put them in the semiconductor shortage they are facing today, but a contributing factor. The future of risk management could potentially play a bigger role in the sense of foreseeing and preventing or further mitigating risks such as the semiconductor shortage with the help of artificial intelligence and better screening of the potential risks.