Global Auto Chip Shortage: Challenges, Opportunities and Implications for OEMs

Automotive, Technology Author: Niko Yang Aug 04, 2021 03:41 PM (GMT+8)

ContributorsLydia Zheng, Ivan Platonov

EditorLuke Sheehan

Pages23

CopyrightEqualOcean Intelligence

Download For Free

Introduction

This report provides a full picture of when and why the chip shortage started, how it has impacted the auto industry and when it is expected to be fully handled. The paper also includes practical recommendations to OEMs on how to prepare for the following supply chain challenges.

Highlights

With its multi-tier system, the auto chip supply chain is more fragmented and longer compared with the general semiconductor supply chain, which renders the shortage issue more complex.
An average vehicle is equipped with up to 1,400 semiconductors. The aggregate value of all these chips is projected to be USD 2,720 per vehicle in 2025. Due to a different electrical/electronic architecture, EVs will have more than that.
Four elements contribute to the current shortage of auto chips: the cyclical nature of the global chip industry, suspension led by the pandemic, booming demand for other electronics and black-swan events.
Microcontrollers (MCUs) are seeing the most shortages among semiconductors. Although TSMC is busy with producing other chips, it has declared it will prioritize ECU foundry making.
We estimate the chip shortage to affect the sale of 2.4 to 4.8 million cars in 2021, or 2.8% to 5.6% of the total global vehicle sales.