End of auto IC shortage in sight

Author: EIS Release Date: Aug 17, 2023

The beginning of the end of the automotive, semiconductor shortage is in sight, says Techinsights, with supply and demand coming into balance  in H2 2023.

 

The beginning of the end of the automotive, semiconductor shortage is in sight, says Techinsights, with supply and demand coming into balance  in H2 2023.

 

The analyst estimates that 2022 automotive semiconductor vendor revenues increased by 27.4% from $46.6 billion in 2021 to $59.4 billion in 2022.

 

 

“The pressure on supply of automotive-specific semiconductor technologies, especially those based on older process nodes, e.g. 28 nm, 40nm etc  is easing up”, says Techinsights.

 

 

The analyst believes that the requirements of EV platforms are better understood, especially in regard to power electronics and processing needs.

 

The key has been the newly established relationships between the car manufacturers and the semiconductor suppliers.

 

Now, semiconductor suppliers have better visibility on demand and can plan capex without the risk of over-building capacity.

 

Underpinning increasing demand is that semi content per vehicle will continue to be driven upwards by the trends towards ADAS/autonomy, advanced infotainment, telematics, and connectivity,

 

“Semiconductor vendors that have the optimal mix of processor, power, analogue, memory, and other semiconductor offerings are best positioned to leverage strategic relationships with OEMs that will help to capture the growth opportunities in 2023 and beyond,“ says Techinsights,