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Automotive chip supply remains tight

Nuying Huang, Taipei; Jessie Shen, DIGITIMES Asia 0

Credit: DIGITIMES

Despite a rapid slowdown in mass-market chip demand, automotive chip demand remains robust with suppliers vying for more available fab capacity in the fourth quarter of 2022, according to industry sources.

Suppliers engaged in the car industry supply chain are actively negotiating with foundries about available fab capacities in the fourth quarter, and are striving for additional capacity support during the quarter, said the sources.

On the other hand, slowdowns in demand for PCs and other consumer electronics device applications have dragged down foundries' fab capacity utilization since the third quarter, the sources indicated. Nevertheless, automotive chip orders can only fulfill a small part of the capacity gap in the third quarter, the sources said.

Foundries particularly second-tier ones which are incapable of filling their fab capacities with more automotive chip orders will still suffer from substantial drops in their fab capacity utilization rates in the fourth quarter of 2022, the sources noted. For first-tier foundries, only 5-10% of their fab capacities will be affected by disappointing orders for mass-market products in the fourth quarter, the sources said.

Automotive chips that are in severely tight supply include MCUs and IGBTs.

The supply of industrial MCUs and other ICs remains relatively tight, also prompting related chip suppliers to vie for more available fab capacities during the fourth quarter, according to the sources. With industrial ICs requiring a shorter period of time for validation than automotive chips, industrial chip orders may quickly fill foundries' capacity gap left by their PC and other CE chip customers.

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