Well.. yes, but not as severe as it is now.
In the automotive industry, on the demand side there is:
- Competition for capacity with next-gen electrical/electronic vehicle system architecture (E/E architecture)
- External shocks causing fluctuating demand: probably the most important is Covid
- Vehicle electrification – the amount of semiconductors in electric vehicles is rising
Where on the supply side there is:
- A competing demand and political risks
- Disruptions from external factors e.g. covid
- The semiconductor cycle time
This gap between the supply and demand has created the global semiconductor supply shortage.
The shortage is not only a result of the pandemic, it is a combination of many factors faced in the last one and half years. On the supply side there were difficulties in access: Covid is a major external shock but so was the blockage of the Suez channel or the Texas factories freeze.
The external issues weren't the only problem, there was a mismatch in the supply chain. For the automotive industry, the supply chain is more complex than it seems due to various production steps, business models and a large number of companies in the value chain. It takes at least 3 months to produce and ship a semiconductor chip, even if there is enough capacity!
Another complex factor is cost for developing. Advanced node chips (SoCs) are growing exponentially and repayment of the high development cost drives
the need for high volumes. Only two companies are able to produce advanced leading node chips (and they are both in Asia). That is a significant risk, that policymakers are responding to by pushing re-localization of the semiconductor supply chain.