The semiconductor shortages coupled with the fire incident at the Japanese chipmaker Renesas Electronics factory, which holds nearly a third of the auto-used microcontroller chips global market share, has hit the automotive industry hard.

MCU, the biggest problem for Tesla

Elon Musk tweeted on Wednesday about microcontroller chip shortages being the biggest challenge in Tesla’s supply chain.

At the first quarterly earnings call, Elon Musk also expressed that chip shortages are the largest issue in the supply chain that Tesla has faced since its presence.

Last month, the American consulting firm, AlixPartners, estimated that the chip shortage will cause a US$110 billion sales loss for car enterprises this year, almost doubling its earlier estimation. 

The U.S. Commerce Department held an online meeting with semiconductor industry leaders on 20 May to address the issues. 

TSMC increases MCU production this year

TSMC, which is dominant in the chip manufacturing industry taking up 55% of the global market share, announced after the semiconductor summit to increase MCU production capacity by 60% this year acknowledging the shortage crisis. Also among the participants were Intel, Amazon, Google, General Motors, and Ford.

TSMC stated that future chip shortages would be more avoidable via their modern Just-In-Time supply chain management, and increasing visibility of demands within the complicated supply chain.

Package and test manufacturing firms reap

Following TSMC’s announcement, Taiwanese package and test manufacturing firms including ASE Group, Greatek Electronics Inc., King Yuan Electronics Co., and Ardentec will likely reap in taking the excessive MCU orders. 

Microcontrollers are one of the most important automotive semiconductor products, that adopt wire bonding for packaging.

ASE Group, Greatek Electronics Inc. both possess this technology, the latter is well-known for MCU packaging, which has become the main source of income for the company. According to Greatek, the automotive demands in the second quarter were “really good.” As vehicles are getting more electric and smart, MCUs, sensors, PMIC demands are also exploding in a chain reaction and further push the firm to a new height.

Industry insiders say clients are already booking package and test manufacturing capacity a year ahead of time. 


Source: anue(1)anue(2)MoneyDJ

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