he automotive industry stands at a critical juncture , facing unprecedented challenges in supply chain management as it races to deliver the next generation of software-defined vehicles .

Recent years have laid bare the fragility of automotive supply networks , with semiconductor shortages causing devastating impacts across the industry . The result has been the loss of millions of vehicles and billions of dollars in revenue .

“ Rapid technological advancements in software-defined vehicles are transforming today ’ s automotive industry , creating exciting opportunities that benefit both automakers and consumers ,” explains Mike Thoeny , President of the Automotive Business Group at Flex .

“ However , the automotive industry must address one major challenge to realise the full potential of the software-defined vehicle : the readiness of the global supply chain .”

The stakes are rising rapidly . According to estimates from Boston Consulting Group , chip content per vehicle will grow by approximately 7 % annually , reaching 1.5-2 times its current level by 2030 . It ’ s a projection that comes against a backdrop of ongoing uncertainty , with KPMG ’ s latest Global Automotive Executive Survey revealing that 45 % of automotive OEM executives outside China are extremely concerned about semiconductor access .

118 February 2025