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Global Multidisciplinary Journal

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Resilience and Reconfiguration: Managing Semiconductor-Induced Disruptions in Automotive and Critical Supply Chains

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Dr. Asha R. Menon 1 ,
4 Global Institute for Supply Chain Resilience, University of Toronto

Abstract

The global semiconductor shortage precipitated by the COVID-19 pandemic exposed deep structural vulnerabilities in interdependent supply networks, particularly affecting the automotive sector and other industries reliant on advanced integrated circuits. This paper presents a comprehensive conceptual and analytical treatment of supply chain resilience strategies tailored to semiconductor-driven disruptions. Drawing from empirical analyses of the 2020–2022 shortages and a synthesis of operations research, inventory theory, and systemic risk perspectives, the study constructs an integrated framework that links disruption typologies, propagation mechanisms (ripple effects), and strategic interventions spanning pre-positioning, sourcing design, production-inventory control, and policy-level reshoring and infrastructure investment. The methodology combines theory-driven modeling approaches—inventory and EOQ-based decision analysis, Markov-modulated disruption modeling, and macro-level resource allocation principles—with scenario-based descriptive results that illuminate trade-offs among cost, responsiveness, and resilience. Results highlight the critical role of diversified sourcing, multi-stage hybrid supplier selection, targeted pre-positioning of critical components, flexible service outsourcing in emergency logistics, and adaptive pricing-credit mechanisms to stabilize demand and supply interactions. We further argue that resilience investments must be prioritized using systemic-risk-aware allocation rules that account for network centrality and the non-linear amplification of disruptions. The discussion addresses limitations of current models—particularly the challenge of quantifying geopolitical and policy-driven risks—and outlines a rich research agenda that integrates stochastic control, game theory, and empirical supply network mapping. The paper concludes with actionable managerial recommendations and policy implications, including when reshoring or capacity investment makes strategic sense versus when network augmentation and contractual innovations are superior. The contribution lies in translating fragmented empirical observations and disciplinary approaches into a coherent, prescriptive body of knowledge for managing semiconductor-induced systemic disruptions.

Keywords

semiconductor shortage, supply chain resilience, ripple effect, pre-positioning

References

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How to Cite

Dr. Asha R. Menon. (2025). Resilience and Reconfiguration: Managing Semiconductor-Induced Disruptions in Automotive and Critical Supply Chains. Global Multidisciplinary Journal, 4(11), 128-136. https://www.grpublishing.org/journals/index.php/gmj/article/view/247

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