“Although chip production is now back to normal it cannot meet the surge in demand as chips are used within every industrial and consumer electronic device. “This coupled with just-in-time lean inventories has created a perfect storm. “Chip manufacturers in South Korea and Taiwan ran down their production capacity and underestimated increased demand as more economies shifted to home working purchasing much more computer workstations, tablets, and smart phones etc. The crisis has already caused a £110 million loss in the June quarter.” Why is there a shortage?ĬT: “The Covid pandemic has caused major supply chain disruptions that started with lower demand for chips in 2020 as factories around the world were shuttered in lockdowns. “This is a severe headache for CEO Thierry Bollore coming just as the company is recovering from the coronavirus savaged sales figures of last year and is surely going to cause a fourth year of annual losses. “And there is currently no end in sight where Jaguar Land Rover are forecasting a 50% slump in sales for the next quarter causing a backlog of over 100,000 global retail orders in their pipeline.

“A modern car can have anywhere from 1,500 to 3,000 chips in up to 80 separate electronic control units with the luxury vehicles built by Jaguar Land Rover being at the higher end of the spectrum.

Dr Charles Tennant How is the semiconductor shortage affecting Jaguar Land Rover?Ĭharles Tennant (CT): “Jaguar Land Rover is currently suffering a semiconductor chip crisis with sales in the April to June quarter at 124,537 vehicles being 30,000 lower than planned, as the company grapples with a global shortage of the chips that are essential in the myriad of electronic systems on their vehicles.

Land rover to due to chip