Automotive Research Institute: "Car Semiconductor Supply Shortage to Persist Beyond First Half of Next Year"

[Asia Economy Reporter Changhwan Lee] The global shortage of automotive semiconductors, which began at the end of last year and continues to impact the global automotive industry, is expected to persist at least until the first half of next year.

On the 8th, the Korea Automotive Technology Institute released a report titled 'Diagnosis of the Current Status of Automotive Semiconductor Supply Shortage and Future Tasks,' stating that production disruptions at automobile companies worldwide have continued due to the automotive semiconductor shortage that started at the end of last year. The scale of global automotive production disruptions caused by the semiconductor shortage is expected to reach 10.15 million units this year.

According to the report, the related industry expects the severity of the semiconductor shortage to gradually ease, but anticipates that the shortage will continue from the first half of next year through 2023 and beyond.

Looking at the damage situation by company, global top automakers excluding Toyota (Volkswagen, Stellantis, GM, Honda, Ford, etc.) have shown a cumulative production performance until the third quarter of this year that is about 30% lower compared to the same period in 2019 before the COVID-19 pandemic.

Hyundai Motor Group Rises to 3rd Largest Global Automaker

However, South Korea's Hyundai Motor and Kia have achieved relatively better results compared to other manufacturers.

Hyundai Motor Group's cumulative production performance until the third quarter of this year decreased by 14% compared to the same period in 2019 but increased by 7.1% compared to the same period last year, showing a higher recovery rate than major companies.

In particular, based on production volume, it rose to the 3rd largest global producer following Toyota and Volkswagen.

This is interpreted as the result of efforts by the domestic automotive industry and government to minimize production disruptions caused by the semiconductor shortage through securing and procuring semiconductors.

The automotive industry, despite difficulties in overseas business trips due to COVID-19, communicated directly through local visits to global semiconductor suppliers in countries such as Germany and Japan, striving to urgently secure automotive semiconductors and maximize supply volume.

The government also prepared support measures, such as announcing a joint short-term supply response and industrial capability enhancement strategy for automotive semiconductors by related ministries, to support minimizing production disruptions and strengthening competitiveness in automotive semiconductors.

However, as the electrification of vehicles progresses, the demand for automotive semiconductors is expected to increase further, highlighting the need to prepare for mid- to long-term demand growth.

The report projected that, following the trend of vehicle electrification, demand for automotive semiconductors will continue to increase, with total units rising from 132.5 billion this year to 208.3 billion in 2027, growing at an average annual rate of about 8%.

Jominwook, a senior researcher at the Korea Automotive Technology Institute, emphasized, "The finished vehicle industry needs to play a leading role by sharing long-term plans for automotive semiconductors with domestic suppliers to revitalize the industrial ecosystem," adding, "The government’s broad support is important to ensure the stable supply chain of automobiles and to enable various automotive semiconductor companies to grow together."

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