Industry News

How will the core shortage problem be solved? Carmakers and Chipmakers Have Very Different Views

Update time : 2022-05-12 14:22:00

The global shortage of automotive chips continues to spread, and automobile enterprises are forced to reduce production. Since this year, automobile manufacturers including general motors, Ford and Hyundai Motor expect that the chip tension lasting for nearly two years is expected to be alleviated in the second half of 2022, but the major chip manufacturers are not so optimistic.

Electrification transformation is accelerating at an unexpected speed. Different views on this most urgent issue have prolonged the uncertainty of the recovery and transformation of the automobile industry. Consulting firm Alix partners estimated last September that the chip shortage would cost the global auto industry $210 billion in revenue and 7.7 million vehicles in 2021.But according to the major car companies, the trend seems to be changing.According to Reuters, Mary Barra, CEO of General Motors, expected the semiconductor shortage to ease in the second half of the year, and Hyundai expected chip supply to return to normal in the third quarter of this year. Tesla took a variety of ways to manage chip supply last year, including writing new software to master chip changes. CEO Elon Musk said at last month's earnings conference call that as chip factories increase production capacity and automobile manufacturers also recognize that panic buying chips slows the supply chain, the chip shortage is not a long-term problem. The chip shortage will be better than last year, but it will still limit the production capacity of all factories. At present, it seems that the chip shortage is expected to continue this year and will not be alleviated until next year. Affected by the continuous shortage of global chip supply, a number of Ford's main products, including F-150 lightning electric pickup truck, have been forced to reduce production since February 7. Eight production lines in the United States, Canada and Mexico have been closed, and the remaining production lines maintain a single shift system. Supply chain problems will lead to the failure of production capacity and sales in this quarter. In an interview at the end of last year, Ford CEO Jim Farley said that the chip supply problem was not difficult to solve, as long as the production priority of electric vehicles was placed before internal combustion engine models. Ford Motor predicts that after the downturn in car sales in the first quarter, there will be a significant improvement in the second half of the year. Ford has partnered with global foundries, an American chip maker. Murat Aksel, head of purchasing business of the board of directors of Volkswagen AG, expects that the global chip shortage will not end within this year, but it should be further alleviated slightly in the second half of the year. He said that as more chip capacity goes online, it will be easier to make reliable predictions in 2023. The demand of automobile manufacturing industry continues to rise, and there are obviously structural problems in chip supply and demand. In an exclusive interview with Handelsblatt last June, Aksel said that the expansion of chip production would take two years, and the shortage ratio would be about 10% in the long run.Compared with these carmakers, major chip makers are less optimistic.
NXP semiconductor said that it could not get out of the dilemma of supply-demand imbalance this year. Despite the increase in production, the tight supply situation will continue. Infineon said that the supply-demand balance of some chips will be improved in the second half of this year, but the mature chip market, which is crucial for carmakers, will continue to be tight. "The supply restriction is far from over, and will continue until late 2022," Reinhard Ploss, CEO of Infineon, said at the investor conference call. He was worried that the spread of novel coronavirus mutation would lead to plant closure, thus restricting supply. STM is one of Tesla's chip suppliers. CEO Jean Marc Chery announced on January 27 that Italy and France's capital expenditure in 2022 is expected to be between us $3.4 billion and US $3.6 billion, further expanding chip capacity.
Even with a large investment, the semiconductor industry has failed to produce enough chips. Stacy Rasgon, an analyst at Bear Stearns, believes that although there is still a shortage and the industry's response is quite positive, he is a little nervous about what may happen in 2022. For example, the supply of automotive chips has exceeded 40% of the normal supply, and the terminal markets such as notebook computers and CPUs have begun to be corrected. At present, dealers seem to be actively building a large amount of inventory, and there has been a gradual discussion on the supply chain. Although the supply is still tight, there are signs of normalization, which is usually a turning signal. Citigroup analyst Christopher Danley is also optimistic about the prospect, but he is worried that the rising momentum of the chip industry has come to an end. Driven by healthy terminal demand, extended delivery cycle and higher pricing, the supply chain has higher pricing in the fourth quarter of 2021, which is believed to continue to drive the next wave of rise.

Previous : India's own semiconductor consumption will exceed $80 billion by 2026

Next : In 2022, the global shortage of cores will intensify. Why is the chip production capacity insufficient?

How many chips does a car need?

Sep .19.2024

Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to

Position and Function of Main Automotive Sensors

Sep .18.2024

The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The

Chip: The increasingly intelligent electronic brain

Sep .14.2024

In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo

LDA100 Optocoupler: Outstanding Performance, Wide Applications

Sep .13.2024

In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install

About Us

About Us What we do Quality People

Products

CHIP/IC Active devices Passive device Components OTHER

China electronic components supplier----Wah Luen Shing Electronic.----www.wlschip.com

Leave a message