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Industry insiders: The supply of automotive chips is still tight, and the shortage of MCU and IGBT is the most serious

08/16/2022 Automotive Chips, Automotive Chip Supply, MCU, IGBT, Fab

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  According to media reports, despite the rapid slowdown in chip demand in the mass market, automotive chip demand remains strong, and suppliers are vying for more available fab capacity in the fourth quarter of 2022.


  Suppliers working in the automotive industry supply chain are actively negotiating with foundries for available fab capacity in the fourth quarter and for additional capacity support in the quarter, the sources said.


  On the other hand, the sources pointed out that slowing demand in PC and other consumer electronic equipment applications has dragged down the capacity utilization rate of foundries. Still, automotive chip orders made up only a fraction of the capacity gap in the third quarter.


  In the fourth quarter of 2022, foundries that do not have the ability to fill their fab capacity with more automotive chip orders, especially second-tier foundries, will still see their fab capacity utilization drop significantly, sources said.


  For tier-one foundries, only 5-10% of fab capacity in the fourth quarter will be affected by weaker orders for mass-market products, the sources said.


  Currently, automotive chips with serious supply constraints include MCUs and IGBTs. The supply of industrial-grade MCUs and other ICs also remained relatively tight, the sources noted, prompting related chip suppliers to scramble for more available capacity in the fourth quarter.


  However, because industrial ICs have shorter verification times than automotive chips, industrial chip orders may more quickly fill the capacity gap left by foundries for PC and other consumer chip customers.


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