Evaluation of Semiconductor Risk Mitigation Strategies in the Electric Vehicle Supply Chain †

The study examines the effects of semiconductor scarcity on the electric vehicle (EV) supply chain caused by an increase in electronics demand after the 2020 automobile industry downturn due to the COVID-19 pandemic. The rising demand for semiconductor chips in the automotive industry, especially in EVs, necessitates strategic measures for original equipment manufacturers and suppliers to strengthen supply chain resilience. This study uses a consequence-based decision-making framework that uses a hybrid Decision-Making Trial and Evaluation Laboratory (DEMATEL) method with Interpretive Structure Modeling (ISM). By leveraging this innovative approach, the research unveils complex causal relationships among supply chain strategies, providing quantifiable insights for prioritizing resilience in the face of multifaceted risks such as trade wars, regulatory changes, and raw material shortages. In addition, the study enhances our comprehension of supply chain resilience within the electric vehicle sector by illuminating aspects that have not been thoroughly examined by the Multi-Criteria Decision Analysis (MCDA) technique employed in this research. The analysis includes the adoption of multisourcing, fostering ecosystem partnerships, and improving supply chain visibility. Through these novel insights, this analysis aims to empower stakeholders and small- to medium-sized enterprises to navigate future automotive market dynamics, with a focus on evolving manufacturer–supplier relationships in the midst of technological advancements.