Rivian delivers more EVs as it launches R2 model, but chip shortage looms - Atlanta Journal-Constitution

Rivian has raised its 2026 electric vehicle delivery guidance from 62,000 to 65,000-70,000 units, driven by stronger-than-expected second-quarter production and the launch of its new midsize SUV, R2. ... Read original →

Rivian’s delivery guidance hike and R2 ramp-up reveal acute exposure to analog and power semiconductor constraints. With 8-inch foundry capacity maxed out and automotive-grade MCUs/SiC modules bottlenecked by packaging in Taiwan, China and Southeast Asia, any geopolitical disruption to TSMC or UMC’s auto lines would directly hit its Illinois flexible production. Tesla and Ford have already locked in SiC supply through 2027, forcing Rivian into costlier secondary sources—raising BOM by 5–8%. Crucially, the U.S. CHIPS Act prioritizes logic over power devices, leaving Rivian’s supply chain more fragile than European rivals’. If Georgia fails to evolve into a localized chip-assembly hub within 18 months, Rivian’s cost structure won’t sustain mass-market pricing, risking the R2 repeating Lucid Air’s premium-to-irrelevance trajectory.