Why is there a shortage of automotive chips?

[Eli]

The shortage of automotive chips is due to the dual-driven increase in demand for new energy and autonomous driving. Here are the reasons: Vast automotive market: China has become the world's largest automotive market, with the trends of electrification and intelligence driving a significant increase in the number of automotive chips. Domestic production of automotive-grade chips has already established a scale foundation. However, domestic automotive-grade chips still face issues such as small-scale application in vehicles, long certification cycles, low technological added value, and high dependence on upstream industries. High costs: Whether for buses, trucks, traditional vehicles, new energy vehicles, or autonomous vehicles, semiconductor chips account for about 30% to 50% of the cost. Over the past decade, the proportion of costs attributed to semiconductor chips and electronic equipment has been increasing.