Germany has boomed on the back of globalization, but now the worldwide web of supply chains that turbo-charged its economy could prove to be a critical weakness.
Shortages of semiconductors and other industrial components are threatening to derail the country's economic recovery, forcing executives and policymakers to rethink supply lines and try to reduce reliance on a handful of Asian and U.S. suppliers.
Automakers and electronics producers, in particular, are being hit hard by manufacturing delays of chips, caused by a global shortfall. This has become one of the biggest risks for Europe's largest economy, on top of a third wave of COVID-19.