Global semiconductor factory’shutdown’ due to US cold wave… The war on the supply and demand of semiconductors’in full swing’
Major semiconductor companies such as Samsung Electronics, NXP, Infineon, etc., stop operation of factories in Austin
Automakers and parts suppliers, securing automotive semiconductors’emergency’
500 Companies> Electronics | 2021-02-18 07:00:02
The production line of the new car’Trail Blazer’ in Incheon GM Bupyeong Plant 1 is stopped.
As the cold wave hit the United States, factories of major local semiconductor companies such as Samsung Electronics are shutting down, which is a sign that the semiconductor supply shortage will intensify. In particular, there is a growing concern that the production disruption of automakers suffering from a lack of supply and demand for vehicle semiconductors will prolong.
According to industry and foreign media on the 18th, Austin Energy, a power company owned by the city of Austin in the United States, ordered local conglomerates on the 16th (local time) to “stop the operation of the factory because it is having difficulty in power supply.”
Accordingly, major semiconductor companies such as Samsung Electronics, which are operating a semiconductor plant in Austin City, stopped operating the plant. Companies that have been ordered to shut down the plant are known to be semiconductor-related companies that consume enormous power, such as Samsung Electronics, NXP, and Infineon. Samsung Electronics is currently operating a 14-nanometer (nm) system semiconductor production line at its Austin plant.
An official from Samsung Electronics explained, “We have been notified in advance from Austin Energy on the 15th, and we have phased out the operation of the line,” and “I do not know how long the shutdown period will last.” He said, “It wasn’t a sudden accident, but because it was a pre-announced stop, there wasn’t much damage.”
Semiconductors, which were already in short supply due to the shutdown of global semiconductor companies, are likely to face a prolonged supply shortage. In particular, global automakers that are reducing their production due to a shortage of automotive semiconductors are expected to experience longer production disruptions. NXP and Infineon, which took measures to shut down the plant, are influential enough to occupy a total of 40% of the automotive semiconductor market as of 2019.
As of 2019/Source: IHS
Major automakers cut orders for semiconductors for vehicles as demand for automobiles declined due to Corona 19 last year. Accordingly, semiconductor manufacturers turned their supply to other semiconductor demanders, such as PCs, smartphones, and servers, where demand has increased rapidly.
However, after the third quarter of last year, as the production of finished cars was on track again, orders for semiconductors for vehicles began to increase. However, semiconductor producers who have already turned their supply to IT companies and have received orders have not been able to respond smoothly to the demand for semiconductors for vehicles.
In the end, GM, the largest automobile company in the United States, stopped operating three factories in the United States due to a shortage of semiconductor supplies, and began to cut production at the Korean factory. Major automakers such as Volkswagen, Audi, Ford, Honda, and Toyota are also producing only major models.
The prospect of an increase in the price of semiconductors for automobiles is also putting more weight. According to foreign media, Taiwanese semiconductor company TSMC is considering a plan to increase the price of semiconductors for vehicles by up to 15% from the end of this month. If the shutdown of the plant is prolonged, it is highly likely that other semiconductor companies will join the price hike process.
A Hyundai Motor Company official said, “It is not a situation where production is not possible because there are no stocks at the moment like other automakers, but we are making efforts to secure stock while paying close attention to the supply shortage situation.” said.
If the production disruption of major automakers prolongs, it is inevitable that companies related to the electrical equipment business that supply parts to automakers will also suffer. In Korea, major conglomerates, such as Samsung Electronics and LG Electronics, are cultivating the electronics business as one of the key pillars of their future business.
An industry insider said, “Semiconductor companies’ plant shutdown can lead to a deepening of semiconductor supply and price hikes.” “Business strategy for not only automakers that require large amounts of automotive semiconductors, but also companies that supply parts to automakers. You can be hit by the problem.”
[CEO스코어데일리 / 유영준 기자 / [email protected]]
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