The Global Semiconductor Industry is facing a serious shortage of supplies, particularly in the Automotive sector. The increasing demand for innovative products, particularly those that require advanced technology and smaller nodes, requires substantial investments and higher research and development costs. According to analysts in the automotive industry, there are two ways to address the global semiconductor shortage: first, reallocating existing production capacity to the automotive sector, and second, enhancing the producers' investment arrangements to drive more capacity in automotive chips.
Sustained collaboration across the supply chain is also essential to optimize the production of automotive semiconductor devices. One of the critical bottlenecks in automotive semiconductor testing is the three-temperature test. Thus, close communication with chip-sealing partners is essential in this testing system to provide timely deliveries of automotive chips.
However, in recent times, the expansion of automotive semiconductor production capacity at specific process nodes has not been keeping up with demand, leading to structural shortages in supply. This structural shortage is expected to continue for some time. The rapid progress of automotive electrification and intelligence is driving the growth in the market for high-pressure special processes. However, the corresponding production capacity cannot be rapidly expanded, leading to structural pressures on the supply side..
Chinese companies that produce automotive chips are looking to increase production capacity and optimize delivery of chips to clients. Therefore, establishing in-depth synergies with upstream and downstream partners across the automotive industry chain is crucial. These collaborations will help support the supply chain, promote structural reorganization of the production process and ensure future supply plans.
Investment in capital is also an essential aspect of enhancing the production capacity of automotive chips. STMicroelectronics had increased its capital expenditures over the last four years by focusing on strategic investments. The company has plans to expend capital by approximately USD 4 billion by 2023.
Moreover, the semiconductor industry must also emphasize innovation, flexible packaging, modules, and chips. Infineon plans to invest EUR 5 billion by 2022 and expand its production capacity at its German facility to manufacture 300-millimeter semiconductor wafers. Additionally, the company has completed construction on a 300-millimeter-thin wafer power semiconductor chip factory in Austria, which began production in 2021. It has also planned to launch a new plant in Johor, Malaysia, which is expected to begin operations in 2024. Texas Instruments will focus mainly on driver assistance systems, and the newly developed AM6xA processor series integrates features such as artificial intelligence and data analysis.
In conclusion, the global semiconductor industry, particularly the automotive sector, is facing significant challenges due to a shortage of supplies. The article highlights that addressing this shortage requires more extensive investments in addition to reallocating production capacity to the automotive sector. Moreover, establishing in-depth collaborations across the supply chain, including with upstream and downstream partners, is crucial. The semiconductor industry must also emphasize innovation, flexible packaging, modules, and chips to increase the production capacity of automotive chipset
