Automakers suffer from chip and labor shortages amid new Covid flare-ups

New Delhi: As Covid-19 continues to impact the global economy in its second year, the automotive semiconductor market will face uneven shortages and tight supply due to labor shortages, according to a new IDC report.

The general theme for semiconductors in 2021 has been the lack of mature process technology nodes.

IDC expects the semiconductor supply shortage to continue into the first half of 2022 as the industry builds inventories to normal levels.

The automotive market continues to be impacted as chips are upstreamed, restricting automotive manufacturing and forcing original equipment manufacturers (OEMs) to leverage their semiconductor supplies on higher value vehicles, which has increased the average selling price of vehicles for 2021.

“Automotive semiconductors will continue to constrain the automotive market in the first half of 2022, but barring unforeseen shutdowns or semiconductor manufacturing issues, supply should gradually improve in the second half of the year,” said Nina Turner, Research Manager.

Adding the time to manufacture the vehicle means that the “automotive market will start to improve towards the end of 2022 and into 2023 if there are no further shocks in the supply chain,” Turner added.

One of the key supply constraints for the semiconductor market has been mature process nodes.

While the automotive semiconductor market is largely dependent on these legacy processes, many other semiconductors are manufactured at 40nm and beyond using these mature manufacturing process technologies, such as: B. LCD drivers, power management ICs, power, car ICs and microcontrollers.

Businesses are slowly adding as much capacity as possible, but capacity improvement will be gradual this year and accelerate in 2023 and beyond, the report said.

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