"'Scarce' Vehicle MCU, $7.6 Billion Sales This Year... Expected to Set 'Record High'"

[Asia Economy Reporter Jeong Hyunjin] Despite the global shortage of automotive microcontroller units (MCUs) this year, it is projected that annual sales will reach an all-time high.

On the 12th, market research firm IC Insights forecasted that sales of automotive MCUs this year will reach $7.6 billion (approximately 8.8 trillion KRW), a 23% increase compared to the previous year. MCUs control the functions of automobiles, industrial equipment, and home appliances, and automotive MCUs, which account for 40% of the global MCU market, are considered a representative semiconductor product experiencing shortages this year.

IC Insights explained that the automotive market, which had sharply deteriorated after the outbreak of COVID-19 last year, stabilized from the second half of the same year and demand increased until the end of the year, but the expansion of MCU supply lagged behind. According to Bloomberg, the lead time (the time from order to delivery) for semiconductor manufacturers last month was 20.2 weeks, the longest period since 2017, and especially the lead time for MCUs was 26.5 weeks, 3 to 4 times longer than before.

Vehicle MCU Sales Forecast (Source: IC Insights)

Automotive semiconductors are mainly produced in 8-inch (200mm) wafer fabs, where technological advancement is slower compared to the latest products. In the first half of last year, during the COVID-19 situation, semiconductor manufacturers reduced production of automotive semiconductors such as MCUs due to decreased car sales, but when automobile demand suddenly recovered, supply could not keep up with demand.

Additionally, in February, a record-breaking cold wave hit the Texas region in the United States, causing semiconductor manufacturers such as Samsung Electronics, NXP, and Infineon to halt factory operations. In March, Renesas, a Japanese automotive semiconductor manufacturer, also experienced a fire at its factory, leading to a three-month recovery period.

IC Insights stated, "Automotive semiconductor companies are increasing MCU production," and added, "Foundry company TSMC announced in July that it plans to increase wafer capacity for MCUs by 60% year-over-year in the third quarter." Nevertheless, the global automotive industry is still experiencing repercussions such as temporary factory shutdowns due to semiconductor shortages.

This year, MCU sales for infotainment systems are expected to account for about 10% of automotive semiconductor products, totaling $780 million. The remaining 90% are MCUs that handle major vehicle components such as engine control, powertrain, brakes, and battery management.

IC Insights projected, "Sales will increase by 14% in 2022 compared to this year and by 16% in 2023." Global sales are expected to exceed $10 billion in 2024.

This content was produced with the assistance of AI translation services.