Car sales in major markets have been affected by the coronavirus pandemic and the negative impact is expected to extend to upstream demand for 6- and 8-inch silicon wafers used to produce automotive electronics via car suply chains beginning from late second-quarter or early third-quarter 2020, according to industry sources.
For automotive applications, 6-inch wafers are mainly used to produce electronic components used in engines and related parts, while 8-inch ones are mainly used to produce sensors, control chips and electronic components for IoV, the sources said.
According to China Association of Automobile Manufacturers (CAAM), car sales in the Chinese market in first-quarter 2020 decreased 42% on year due to the pandemic. CAAM predicts that sales in the second quarter will rebound but the increase will be less than the on-year decrease in the preceding quarter and 2020 sales will slip about 10% on year.
In the Europe market, car sales in first-quarter 2020 dropped 39% on year and the decrease is estimated to peak in April-May, the sources noted.
As China-based 6-inch wafer makers are increasingly competitive, some international competitors are gradually decreasing output to avoid price competition, the sources indicated.
Article translated by Adam Hwang
