With Chinese automakers seeking to get low quotes from their auto component suppliers, the auto component makers reportedly have turned to request their suppliers of chips in oversupply to cut prices by 10-15% as automotive chips are starting to have mixed levels of shortages, according to sources from the related upstream supply chain.
Power semiconductor devices remain in high demand as automotive IC shortages have generally been mitigated. According to DIGITIMES Research analyst David Ma, insulated-gate bipolar transistors (IGBT) will likely see supply and demand reach equilibrium in the third quarter of this year. Its production capacity will also grow significantly in the coming years.
Navigate on Autopilot (NoA) has become the standard feature of an intelligent car in recent years. China-based AI chip maker Horizon Robotics launched the Journey 5 chip, boasting high computing power and performance. It has formed partnerships with OEMs to speed up the adoption of automotive AI chips locally.
More non-automotive companies have started considering or expanding their businesses to the automotive sector. At a seminar on March 21, Renesas Electronics' executives said those who want to enter the automotive market should form a strategic approach with their current know-how in a particular segment.
NXP Semiconductors has launched its S32G3 Vehicle Network Processors into production with availability to the mass market through the NXP distribution network.The S32G3 series extends the S32G family with four new processors that are software- and pin-compatible with the popular S32G2 series that went into production in Q2 2021.
Though automotive IC vendors have predicted the chip shortage to persist into the second quarter of 2023, car sales in China have been disappointing so far this year, including sales of new energy vehicles (NEV), according to industry sources.
Starting this month, Toshiba Electronics will start to provide test samples of TB9032FNG - an automotive driver/receiver IC for the physical layer interface defined in the in-vehicle communications protocol Clock Extension Peripheral Interface (CXPI). The Japan-developed protocol has been adopted as an international standard.
China's Baidu recently announced the AI product "ERNIE Bot," which uses the second generation of Kunlun AI chip in its model. Besides focusing on AI chip development, Baidu is also focusing on applying Kunlun chips to autonomous driving. Recently, Chinese automaker BYD has invested in Kunlun to expand its planning for high-end autonomous vehicles (AV).
Despite persistently weak demand for PCs, handsets, and consumer electronics devices, the automotive and industrial sectors continue to see robust momentum, with supplies of certain chips, such as car-use MCUs and MPUs, remaining tight, according to industry sources.
China's car market, as the biggest in the world, can provide enough momentum to allow the country to develop a self-sufficient supply chain amid expanding US trade sanctions, according to industry sources.
Ever-rising demand for electrical vehicles (EVs) is driving fast development of IGBT (insulated gate bipolar transistor) module applications, prompting Chinese semiconductor players such as BYD Semiconductor and StarPower Semiconductor to strengthen deployments in diverse voltages of IGBT solutions to meet the huge EV market demand in China, according to industry sources.