A global shortage of semiconductors—caused by manufacturing delays that some semiconductor makers blame on a faster-than expected recovery from the coronavirus pandemic—has forced automakers to adjust or cancel production over the past months.

Now SEMI, the largest global trade association for the design and manufacture of semiconductors, and the Center for Automotive Research (CAR), a 501(c)(3) nonprofit independent automotive/mobility industry think tank, have signed a Memorandum of Understanding (MOU) for joint exploration to advance increased supply chain collaboration between the semiconductor and automotive industries.

Building on the SEMI Smart Mobility initiative, which fosters collaboration across the global automotive electronics supply chain, the MOU lays the foundation to connect microelectronics manufacturing and design stakeholders with the automotive and mobility ecosystems through programs and events that advance both industries.

For SEMI, the collaboration with CAR supports the mission of its Smart Mobility initiative to foster mutually beneficial interactions and broaden transparent dialogue between its global member companies and the automotive ecosystem. For CAR, as electronic systems are increasingly becoming the critical differentiators in vehicles, having automakers, suppliers, and semiconductor manufacturers work together more closely will add visibility into supply and demand trends.

The result is intended to help connect larger cross-sections of the supply chains and minimize the impact and risk of future chip shortages and over-supply.

This MOU provides vehicle OEMs with access to innovation, the ability to influence technology direction and pace, along with greater visibility into global supply chain developments. Working with CAR will expand the cross-industry collaboration that is part and parcel to our automotive electronics and mobility activities, helping SEMI members in the global electronics design and manufacturing supply chain to better serve their automotive customers.

—Dave Anderson, president of SEMI Americas

As automotive technology evolves, the industry will become more semiconductor-intensive: advanced safety features, electric vehicles, powertrain controls, automated driving, telematics, and infotainment all drive rapidly increasing auto chip demand. In today’s market context, this MOU serves as a first step toward cultivating strategic partnerships between automotive OEMs, Tier 1 suppliers and semiconductor suppliers, and it can help to strengthen industry-wide efforts to share information and drive alignment.

—Carla Bailo, president and CEO for CAR

The SEMI Smart Mobility initiative is designed to engage automotive OEMs, Tier 1s, device makers, design houses, equipment and materials companies as well as R&D institutes in SEMI’s Global Automotive Advisory Council (GAAC) to connect, collaborate and innovate across the global automotive electronics supply chain.