This is more than bottom lines, production delays or inventory shortages. When it comes to supply chain disruptions — particularly as they relate to microchips and next-generation technology — it's a matter of national security.
The root of the issue is that the auto industry — among others — is over-reliant on microchip production from one part of the world. Governments around the globe, having experienced the complications of the COVID-19 pandemic, particularly as they relate to personal protective equipment manufacturing and distribution, are committed to avoiding these bottlenecks in the future when it comes to technological products.
Francois-Philippe Champagne, Canada's minister of innovation science and industry, believes some of these issues will be addressed with investments for onshoring or near-shoring of key products.
"I think we are going from global to regional. And I can tell you, from a government perspective, we are putting more emphasis on [supply chain] resiliency than [supply chain] efficiency," Champagne said during a panel discussion hosted as part of Michelin's Movin'On summit. "That is true of Canada, but I can tell you it is true of the G7, it is true in the Five Eyes, it is true between Canada and North America and our U.S. friends.
"And you will see a number of investments to be more resilient when it comes to microchips, when it comes to batteries, when it comes to biomanufacturing," he said. "'Never again' is what we are saying as a government. 'Never again will we be in the same position.'"