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The case describes the disruption caused by the shortage of chips and sensors in the automobile sector. Although semiconductors used in the automobile sector are essentially low value and cost only a few dollars, they are technologically intensive in terms of both design and manufacturing. Moreover, only a few players in the manufacturing sector have the capability to produce chips, creating an asymmetry in the power equation. Interestingly, the semiconductor value chain is adapting to new geopolitical tensions, and the chipmaking landscape may undergo a significant change in the next 10-15 years. In this context, the case discusses the structure of the semiconductor industry as a whole and its characterization within the automobile sector. It also describes the current sourcing model of semiconductors used by automakers. The main objective is to help students better understand the complex and evolving supply chain structure and its implications for automobile companies worldwide. The case concludes with specific questions about how automakers should restructure their semiconductor supply chains and address future disruptions.