Automakers plan to use advanced technology to make chips, sources say

Some automakers around the world are turning to advanced process nodes to make their chips, especially for new models and electric vehicles, as automotive chips with mature processes remain in short supply, according to industry sources.

According to Taiwanese media "Electronic Times", sources pointed out that automotive supply chain players are integrating advanced process chips into new models, which involves comprehensive new design, certification and mass production, thus skipping the most severe shortage of chips. . They are also trying to use new process chips for their existing models to ease the shortage of mature chips.

Earlier, the well-known consulting firm McKinsey pointed out in a report that the annual demand for automotive semiconductors may increase from about 11 million 12-inch wafers in 2019 to 33 million in 2030, with a compound annual growth rate of 11%. Continuing the current pattern, most future automotive wafer demand will involve process nodes of 90nm and beyond, as many automotive controllers and electric powertrains, including electric drive inverters and actuators, rely on these mature chips.

While semiconductor companies are ramping up production of chips at mature nodes, McKinsey's analysis suggests a compound annual growth rate of around 5% from 2021 to 2026, which is not enough to eliminate supply-demand mismatches.