Input 2021.02.10 12:00
According to the association, vehicle semiconductors are less profitable than other system semiconductors, and due to the need to ensure safety, they are items that require high reliability and safety under severe temperature, humidity, and shock conditions for a long life. Due to these characteristics, it is difficult to expand supply in a short period of time as it is difficult for new companies to enter due to the burden of defects, safety accidents, and recalls.
The association explained that Volkswagen, Toyota, and GM are expanding their plant shutdowns or lowering their output due to a supply disruption in semiconductors. In the first quarter of this year, Volkswagen is expected to cut production of 100,000 units in total, including production cuts of 50,000 units in China, and production disruptions for Audi are expanding, such as leaving more than 10,000 employees.
Toyota is temporarily adjusting production at its factories in China (Guangzhou), the United States (Texas), and Japan (Aichi Prefecture), while GM also shuts down some of its factories in the United States, Canada, Mexico, and Korea. In addition, ford, Renault, FCA, Honda, and Nissan are also temporarily discontinuing production.
Automakers are cutting production mainly for small cars with low profitability, and the supply of commercial and rental vehicles is on a sharp decline. Currently, we are minimizing the damage due to exhaustion of inventory and production cuts mainly for unpopular models, but if supply disruptions are prolonged, production disruption of flagship models is also expected.
The association pointed out that there is a possibility that the supply and demand for automotive semiconductors could be prolonged. According to IHS Markit, the supply disruption for vehicle semiconductors is expected to be 670,000 units in the first quarter of this year alone, and even in the case of China alone, production disruption of 250,000 units is expected due to the shutdown of factories for 5∽14 days, mainly for foreign companies such as Volkswagen and Honda. do. The global supply disruption is expected to continue through 3Q, given that the MCU lead time (the time required from ordering to delivery), which is the core of the supply disruption, is 26-38 weeks.
According to the association, in Korea, Hyundai and Kia have no immediate production disruption as their suppliers secured inventory in advance, but GM Korea canceled overtime work in January, and the aftermath of the supply shortage of vehicle semiconductors such as production reduction at Bupyeong 2 plant in February expanded. Has become. Renault Samsung is expected to have no short-term problems due to long-term supply management at the Renault Group level and Ssangyong’s production volume reduction.
The association emphasized that in order to minimize the supply disruption to our industry, first, the government needs to ask major producers (Taiwan TSMC) to cooperate in increasing automotive semiconductor production to secure short-term supply. This is because there is a desperate need to expand the production volume of existing foundries as the long-term verification process is inevitable for finding alternative foundries other than the existing foundry (TSMC).
Major automakers such as the United States, Germany, and Japan have also requested cooperation from the Taiwanese government to increase production of automotive semiconductors. It is pointed out that it is necessary to secure alternative production capabilities through domestic foundry companies such as Samsung Electronics and DB HiTek in order to prepare for prolonged supply-demand disruption.
Man-gi Chung, head of the Korea Automobile Industry Association, said, “With the crisis caused by Corona 19 not fully resolved, the disruption in the supply of semiconductors for vehicles is likely to spread the crisis in some of the automobile industry.” “Cooperative network between the domestic automobile industry, fabless and foundry industries “We need to expand our domestic vehicle semiconductor development and production capabilities.”