Discussion Paper

When the Chips Went Down: Motor Vehicle Production and the 2021-2022 Semiconductor Shortages

Abstract: The motor vehicle industry suffered severe production disruptions during 2021 and 2022, as semiconductor shortages—triggered by pandemic-era plant closures and shifting demand patterns—brought some assembly lines to a standstill. Having recovered to nearly pre-pandemic levels by the fourth quarter of 2020, aggregate U.S. light vehicle production plunged in early 2021, ultimately falling 20 percent below 2020:Q4 levels by the third quarter (figure 1).

https://doi.org/10.17016/2380-7172.4155

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-09-28

Number: 2026-09-28-1