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Supply chain: Automotive chip may remain in short supply until 2024

SemiMediaEdit
December 8, 2022

Dec. 8, 2022 /SemiMedia/ -- According to insiders in the automotive supply chain, although the supply of automotive chips has improved recently, the shortage is unlikely to be completely resolved before 2024, because the increase in supply cannot keep up with the rapid growth in demand.

In response to continued chip shortages, some automakers have begun tweaking 2023 vehicle designs so they can source chips with the same functionality from more than two suppliers. In this way, the impact of the shortage of automotive chips on production can be reduced.

Sources pointed out that if a foundry has been verified by automotive customers, it will take at least six months to convert its process capabilities to make automotive chips. For the process capability that has not yet been verified for automotive chip production, it will take 2 to 3 years to complete the verification. Therefore, it will take longer to solve the shortage of automotive chips from capacity expansion.

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