South Korea group car chip national team, Samsung and Hyundai participate

Market research firm IHS Markit said in January that an ongoing global chip shortage is likely to reduce global auto production by 672,000 units in the first quarter of this year alone.

Currently, Korean companies have no business in the global automotive chip market, and Korean automakers rely entirely on imported chips. This type of chip requires particularly high levels of safety and needs to be customized for different vehicles right from the start, which means that development does not lead directly to mass production.

In reality, this market remains unattractive to chipmakers. This is because the market has high barriers to entry, its productivity is still low, and it is smaller than the device chip market. The proportion of high value-added semiconductor products used in the IT equipment market is higher than that in the automotive chip market.

However, with the development of green cars and autonomous driving technologies, the global automotive semiconductor market is growing rapidly. According to data, from this year to 2026, this semiconductor market is expected to grow from $45 billion to $67.6 billion. In this regard, Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Group Chairman Jung Eui-sun discussed their cooperation at automotive electronics industry conferences in May and July last year.

In addition, South Korea’s Ministry of Trade, Industry and Energy established an advisory group on March 4 so that several companies, including Samsung Electronics and Hyundai Motor Group, can better cooperate in emerging industries. An advisory group will assist with research and development, project start-up, facilities and equipment, and detailed plans will be released shortly.

China is concerned about the risk of supply interruption of automotive chips: 90% rely on imports. It is recommended to take multiple measures to improve the localization rate

According to China Central Broadcasting Network, the localization of automotive chips has become the focus of attention of many deputies to the National People’s Congress.

The representative suggested that to maintain the security of the automotive supply chain, the state needs to introduce active policies to promote the localization of automotive chips. At the same time, it is also necessary to form a government-led, vehicle enterprise alliance, and carry out key support strategies for leading chip companies.

Since the end of 2020, the supply of automotive chips has faced the risk of being cut off. IHS Markit predicts that by March this year, the supply of automotive chips will be at its worst, and the gap between supply and demand will be the widest.

Wind data shows that in the domestic automotive industry, the self-research rate of automotive chips only accounts for 10%, that is, 90% of automotive chips rely on imports.

From the perspective of the global automotive chip market share, the automotive chip market share of American, European and Japanese companies accounts for more than 90%, while the Chinese automotive chip market share is less than 5%.

In this regard, Zhu Huarong, deputy to the 13th National People’s Congress, secretary of the party committee and chairman of Changan Automobile, suggested that on the basis of ensuring the stable supply of the industrial chain, the state should introduce active policies to promote the localization of automotive chips and maintain the safety of the automotive supply chain. Specifically, it includes: setting up major special projects for the localization of core chips and production equipment in the automotive industry; strengthening incentive policies to encourage enterprises to increase investment; guiding the establishment of a benign and dynamic industrial environment; strengthening standard formulation and establishing access thresholds.

Chen Hong, deputy to the 13th National People’s Congress and chairman of SAIC Motor, said that it is difficult to promote the localization of automotive-grade chips by market forces alone. It is necessary to form a government-led, vehicle-company alliance to provide key support for leading chip companies. strategy.

Chen Hong suggested that on the basis of the support policies for consumer-grade chip companies, we should increase support for the automotive-grade chip industry, so that vehicle and component companies are “willing to use, dare to use, and actively use.” At the same time, formulate a top-level design route of “two-step” for automotive-grade chips, and realize the power conversion from external to internal for automotive-grade chip companies.

Specifically, the first step can be jointly promoted by OEMs and system suppliers to support key chip companies; the second step is mainly driven by chip suppliers to form an endogenous power mechanism for chip suppliers and solve technical barriers High localization of automotive-grade chips.

Generally speaking, automotive chips can be divided into three categories according to their functions: one is the ESP (Electronic Stability Control System) and ECU (electronic Control Unit) responsible for computing power, which are mainly distributed in the processor and controller systems, such as the central control system. , automatic driving and assistance systems, engines, etc.; the second is IGBT (insulated gate bipolar transistor) and MOSFET (metal-oxide semiconductor field effect transistor) responsible for power conversion, which are mostly used for power supply and interface; the third is sensor, Mainly used for various radars, airbags, tire pressure detection, etc.

The shortage of automotive chips this time is mainly for ESP and ESU. Regarding the reasons for the shortage, a number of research reports such as Chuancai Securities and Guosheng Securities pointed out that the fundamental reason is that automotive chip manufacturers have not invested enough in wafer technology, especially the insufficient expansion of production from 2015 to 2019, and they are also affected by the supply caused by the new crown epidemic. chain interruption, etc.

Regarding the duration of the shortage of automotive chip supply, Li Shaohua, deputy secretary-general of the China Association of Automobile Manufacturers, previously stated that the shortage will continue for more than half a year in the future. Production and sales in the second half of the year will gradually make up for the losses in the first half of the year.

According to data from the China Association of Automobile Manufacturers, in January, the production and sales of automobiles were 2.388 million and 2.503 million, down 15.9% and 11.6% month-on-month, and up 34.6% and 29.5% year-on-year.

In terms of policy, the Department of Electronic Information and the First Department of Equipment Industry of the Ministry of Industry and Information Technology recently directed the China Automotive Chip Industry Innovation Strategic Alliance to compile and release the “Automotive Semiconductor Supply and Demand Docking Handbook”. The Ministry of Industry and Information Technology stated that it will support enterprises to continue to improve the supply capacity of integrated circuits, strengthen supply chain construction, and increase production capacity allocation.

In addition, Tian Yulong, spokesperson of the Ministry of Industry and Information Technology, also stated at the press conference of the State Council Information Office on March 1 that the Chinese government will give strong support to the chip industry at the national level, and jointly create a market-oriented, legalized and international business environment. and the ecological environment for industrial development. The main measures include: increasing corporate tax cuts; strengthening the basic issues involved in improving chips; optimizing the ecological environment of the integrated circuit industry; focusing on talent reserve and cultivation, etc.

Zhang Xiang, a senior automotive industry analyst, said that the risk of this round of automotive chip supply cuts has a greater impact on the international market as a whole, and the impact on the Chinese market is controllable. Judging from the current automotive market price, the overall price is stable and has not risen. Regarding the localization of automotive chips, Zhang Xiang believes that this is not a short-term catch-up problem, but a gradual process. “You can make some peripheral chip products first, and then gradually approach the core products.”



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