“Very severe” automotive semiconductor shortage … Situation likely to continue into Q3

The vehicle semiconductor shortage, which began in earnest in late January, was diagnosed as currently “very severe.”

According to CNBC of the United States, the CEO of Porsche Oliver Blume said on the 22nd (local time) and warned that “it will have a great impact on the production of the company’s products in the coming months.”

He appeared on CNBC’s ‘Quark Box Europe’ and emphasized that the current phenomenon of semiconductor shortages “is being affected every day, so we are watching the situation closely and long-term measures are needed.”

Market research firm IHS Markit predicts that the semiconductor shortage will continue through the third quarter of 2021.

The current shortage of automotive semiconductors has arisen for multiple reasons. One of the main reasons is that the demand for semiconductors increases as the demand for consumer electronics, 5G mobile phones and communication networks, platforms and IT and gaming devices increase dramatically in conjunction with Corona 19. The automotive industry suffered the Corona 19 impact through the third quarter of 2020, and major semiconductor suppliers accepted orders for home appliance semiconductors before starting to produce automotive semiconductors.

Of course, this situation was predicted even before the coronavirus. While demand for microcontroller unit (MCU) chips in the automotive industry has exploded, few companies produce them.

The MCU is a tiny chip averaging 40nm (40nm). Since high technology and huge amounts of money are required, the factories that can supply it are limited and the major semiconductor companies do not have direct factories and produce semiconductors through production to order. Currently, 70% of the global automotive MCU market share is held by Taiwan Semiconductor Company (TSMC), a leading foundry (consignment production) company.

An analysis that this situation escalated as the automotive industry shifted the manufacturing process to just-in-time. Blume’s CEO said: “Moving forward, rather than stick with production on time, we need to adjust inventory more seamlessly.”

UPI News / Reporter Kim Hye-ran [email protected]