When Will the Automotive Chip Shortage Be Resolved?

[JayceLee]

The shortage of automotive chips is expected to reach a balance in 2022. Here are the details: Introduction to Automotive Chips: Automotive-grade chips, components for vehicles. Automotive-grade refers to the specification standards applicable to automotive electronic components. Domestic Situation: China has become the world's largest automotive market, with trends in electrification and intelligence driving a significant increase in the demand for automotive chips. Domestic production of automotive-grade chips has already established a scale foundation. However, current domestic automotive-grade chips still face challenges such as small-scale application in vehicles, long certification cycles, low technological added value, and high dependency on upstream industries.

[Roberto]

I've noticed this issue for a long time. A friend working at an automaker revealed that chip supply is slowly recovering, with improvements expected by the end of this year or early next year. Actually, the most affected are those high-end control chips, such as those used in ECUs and sensors. Automakers are particularly anxious now, with many production lines operating at half capacity. From my observation, foundries are prioritizing automotive-grade chip production, and with packaging and testing plants in Malaysia basically back to normal operations, barring any unexpected events, vehicles ordered after next year's Spring Festival may not be significantly affected.

[McAmara]

When I picked up my car, the 4S store manager mentioned the chip shortage issue, and even optional configurations were out of stock despite offering to pay extra. They said the current order cycle has significantly shortened, indicating improvements in the supply chain. The exact timeline varies by region, with cities in the south where factories are concentrated recovering faster. Recent announcements from chip manufacturers mentioned a 20% increase in production capacity in the third quarter, so it's estimated that ordinary models will return to normal by September or October. However, luxury cars with specialized chips might have to wait a few more months due to longer verification cycles.

[VonValeria]

I discussed this topic with a mechanic during a car repair. He mentioned that it's currently difficult to order spare parts. The chip shortage primarily affects new car production and infotainment systems, but the used car market is booming instead. The news about TSMC's new factory going into production is crucial, as automotive chip deliveries have significantly increased since June. I believe ordinary car owners don't need to worry too much, as daily driving isn't affected. A full recovery in chip supply will likely take until at least the fourth quarter. During this period, manufacturers are modifying designs to use alternative chips - some cars have even eliminated features like auto start-stop.