"Rapid Changes in the Vehicle Semiconductor Ecosystem...Automakers and Parts Industry Must Respond Proactively"

Korea Automotive Research Institute Report on 'Changes in the Automotive Semiconductor Ecosystem Triggered by Supply Shortages'
Need to Share Long-term Demand Forecasts and Production Plans with Subcontractors
Utilization of New Materials like GaN and SiC... Expansion of Next-generation Power Semiconductor Mass Production
Parts Industry Must Also Shift Materials Accordingly
Securing Software Capabilities to Adapt to Changes in Semiconductor Functional Structures

[Asia Economy Reporter Ki-min Lee] In the rapidly changing automotive semiconductor ecosystem due to the prolonged semiconductor supply shortage, it has been pointed out that proactive measures are necessary for domestic automakers and parts manufacturers to survive.

The Korea Automotive Technology Institute (KATRI) stated in its report titled "Changes in the Automotive Semiconductor Ecosystem Triggered by the Supply Shortage," released on the 27th, that major automakers have requested semiconductor supplies on a yearly basis, resulting in cumulative orders already exceeding 20-30% of next year's production capacity.

According to KATRI, the demand has already surpassed the production capacity of automotive semiconductor manufacturers for next year, and orders for 2023 are currently being accepted. Additionally, the average lead time from order to delivery, which was 22.9 weeks as of last October, increased to 23.3 weeks last month, showing an upward trend.

The business environment for automotive semiconductor manufacturers is also undergoing changes. Companies are already developing next-generation high-efficiency power semiconductors using new materials such as Gallium Nitride (GaN) and Silicon Carbide (SiC). Infineon plans to expand its power semiconductor production by enlarging its Villach plant in Austria and Dresden plant in Germany, while STMicroelectronics and ON Semiconductor intend to acquire SiC manufacturers and expand mass production of related products.

Furthermore, for semiconductors with severe supply-demand imbalances such as MCUs and fine process chips, companies are adopting a Fab-Lite strategy that increases outsourced production rather than direct manufacturing. In addition, companies like Renesas, which have acquired fabless semiconductor design firms for power and Internet of Things (IoT) semiconductors, are entering semiconductor businesses beyond automotive applications.

Accordingly, major automakers such as Ford, General Motors (GM), and Stellantis have begun responding by collaborating with semiconductor companies to develop next-generation chips. Tesla has also partnered with Samsung Electronics to internalize semiconductors for future vehicles, including autonomous driving and application processors (AP). Volkswagen, Nissan, and others are developing general-purpose chips and new product lines to replace existing semiconductors and secure supply flexibility.

KATRI pointed out that domestic companies should also shift from the existing short-term ordering system of three-month intervals to a method that communicates parts demand linked to long-term demand forecasting and production planning to their partners, thereby smoothing semiconductor supply flows. A KATRI official emphasized, "As mass production of SiC- and GaN-based power semiconductors is expected to expand, domestic automotive parts manufacturers must transition to next-generation materials. Furthermore, they need to secure software capabilities to prepare for changes in electrical and electronic functional structures."

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