The Semiconductor Chip Shortage: Exploring the Effects of Globalization and the COVID-19 Pandemic on the Automobile Industry.
Open Access
- Author:
- Mitchell, Lauren
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
John C Spychalski, Thesis Honors Advisor - Keywords:
- Supply Chain
Globalization
Trade Theories
COVID-19 - Abstract:
- The following thesis contains an in-depth literature review of the effects of the COVID-19 pandemic on the automobile industry, specifically the semiconductor shortage, while simultaneously exploring the creation and structure of the United States supply chain. Throughout this thesis, readers will discover the countless flaws within the U.S. supply chain, with a strong emphasis on the U.S. being in a state of hyper-reliance on China and putting themselves into an increasingly intimidating trade deficit. This thesis will explore various international business trade theories, and eventually piece together parts of each theory to provide ideas for improvement and change. It will also investigate the possibilities of creating semiconductor chips in-country, and overall encouraging supply chain executives and government officials to do so. The challenges that accompany producing semiconductor chips in America are delved into, but it is overall a strong recommendation to move forward with. Globalization, its pros, cons, and effects will be analyzed, aiming to compare the state of American trade in modern times to how it was in the 1960’s, a time where America was the number one exporter. Overall, this thesis will depict why and how the United States needs to exit this state of hyper-dependence with China, and prove to reader that is, in fact, worth it for the U.S. to value this problem and make change, especially considering the vulnerable state of the automobile industry. The COVID-19 pandemic did not necessarily cause the semiconductor chip shortage, it only depicted the flaws within the United States supply chain and begs their leaders to do something about it.