Automotive component suppliers, such as cooling fan maker Yen Sun Technology, have seen customer orders pick up substantially, which may indicate an easing of chip shortages, according to industry sources.
Accounting for a 20% share of the global high-end automotive cooling fan market, Yen Sun currently has orders from several automakers in Europe and China. Yen Sun general manager Robert Liu said that the company is having clear order visibility through mid-2023 and its operation is unlikely to be affected much by the Russia-Ukraine conflict in the short term.
With the easing in component shortages, Liu pointed out that chipmakers have started re-accepting Yen Sun orders for cooling fans. The company has placed orders in advance due to their long lead time, Liu said, adding that the company is expected to register double-digit revenue growth for its automotive components business this year.
Seat belt spindle supplier Getac Technology also said its January orders have returned to the 2019 level. Company chairman James Hwang attributed this to the improvement of automotive chip shortages and surging demand in the automotive market.
Expressing optimism about shipment prospects for Getac's automotive components business for 2022, Hwang said the company is targeting a 20% revenue growth for 2022. He also said Getac is expected to receive more orders in the second quarter this year.
Although Getac will see its automotive component production lines all come online between March and April, it might still not be able to completely fulfill its orders due to robust demand, said Hwang. He noted that the company constructed two factories in 2020 and another two in 2021 to double its annual production capacity.
Both Yen Sun and Getac are looking to expand their automotive component businesses. Yen Sun is currently developing cooling fans for autonomous vehicles and LiDAR systems with its Chinese and European partners, while Getac is developing products for advanced driver assistance systems (ADAS).