Recently, there is a rumor that “Europe and the United States will completely stop supplying Chinese car chips”, but this is not the case. U.S. car companies are pressing the government to reduce or stop the supply of consumer electronics chips for the auto industry. A number of suppliers and vehicle companies said: Although the supply of upstream chips is tight, the “full suspension of supply” is totally unreal!
In 2021, many automakers around the world are under new pressure-due to the shortage of automotive chips, they have to reduce or even stop production. However, news from many Tier 1 suppliers such as Bosch and Infineon shows that Europe and the United States still supply high-end automotive chips, but the supply is tight.
The American Automobile Policy Committee (AAPC), a lobbying organization representing the three major U.S. automakers, is urging the U.S. Department of Commerce and the upcoming Biden administration, hoping that the U.S. government will put pressure on Asian semiconductor companies to shift the production capacity of consumer electronics products. Make key chips for vehicles. It is understood that Toyota, Volkswagen, Ford, Fiat Chrysler, etc. are currently shutting down production lines in some regions or delaying production of some models. Among them, Ford Motor’s two production lines have been suspended because of this, and Honda Motor has reduced production.
Due to the increase in consumer electronics demand and the decline in demand for automobiles due to the new crown epidemic, automakers reduced their purchases of chips last year, and global semiconductor production capacity tilted towards consumer electronics. After the demand for automobiles in China recovered at the end of last year, Chinese companies began to increase chip orders and suddenly found cars. There is a shortage of chips. This is because large consumer electronics companies are hoarding goods and robbing the supply of automotive chips. It is reported that due to the US sanctions, Huawei, Xiaomi, etc., in order to ensure the supply of mobile phones to stock up. At the same time, domestic foundries and packaging and testing companies are worried that the United States will continue to expand the scope of sanctions and chip demanders will increase inventory in advance. In addition, with the full rollout of domestic 5G networks, operators in some regions have stepped up stocking, increasing the demand for 5G chips.
People in the semiconductor industry said that the domestic supply of chips has also decreased, increasing supply pressure. Domestic chip factories such as SMIC were sanctioned and could not guarantee normal supply. A large number of orders flocked to head chip suppliers.
By convention, a complete chip manufacturing process includes: chip design-foundry-packaging and testing. Many people in the semiconductor industry said that the current chip industry chain is maintaining a high boom, whether it is the front-end foundry or the back-end packaging and testing capacity. But it is the global wafer that is under the greatest pressure. At present, the global wafer fabs are already operating at full capacity and cannot accept more new monotonies. Zhao Haijun, the co-CEO of SMIC, pointed out that the company’s plants in the third quarter were fully operational. Benefiting from the growth in demand, companies such as SMIC have made a lot of money. Public data shows that in the third quarter, SMIC’s wafer revenues related to power management, radio frequency signal processing, fingerprint recognition, and graphic image processing increased by 8% month-on-month and 22% year-on-year. ; Microprocessor and dedicated memory related wafer revenue increased by 6% month-on-month and 26% year-on-year.
The 8-inch capacity is stuck in the wafer neck. At present, many manufacturers have already tilted their resources toward 12-inch (high-end) wafers, but it will take some time. During the transition period, demand can only flock to 8-inches, exacerbating the situation that the supply of 8-inch chips exceeds demand. The wafer suppliers are working overtime.
Continental has stated that although chip makers have expanded their production capacity to respond to the recent surge in demand, the additional supply required by the market will take 6-9 months to be realized, and the potential supply bottleneck may continue until 2021.
Post time: Jan-22-2021