TSMC and GlobalFoundries have both struck long-term contracts with car vendors.
Honda announced recently a collaboration with TSMC to stabilize vehicle chip supply. Earlier this year, General Motors (GM) and GlobalFoundries (GF) disclosed a long-term agreement under which GF will manufacture for GM's key chip suppliers at the foundry's advanced semiconductor facility in upstate New York.
On the other hand, pure-play foundries have reportedly experienced order cutbacks of 10-20% from automotive IC design specialists in China, Japan, Taiwan, and the United States, with fabless customers willing to pay liquidated damages.
Despite the short-term demand swings, mainstream automakers continue to seek greater ties with foundries, according to industry sources. Individual automobiles' reliance on chips is growing. In 2022, each electric vehicle required approximately 770 ICs, while fuel vehicles required about 550 ICs.
Automotive semiconductor demand will skyrocket by 2026, the sources quoted Alix Partners as saying. For example, the analog chips required for electric drive, for example, will increase by 75%, while MCUs will increase by 30%. However, semiconductor manufacturers expect to increase capacity in these sectors by just 56% and 12%, respectively.
Mainstream automakers are increasingly aware of automotive semiconductors, and therefore have redefined the usual supply chain operation model by entering into direct agreements with foundries, the sources noted.
Article translated by Jessie Shen
