According to China Taiwan Electronics Times news, automotive module manufacturers said that some of the recent automotive chips have begun to reduce, including driver IC, PMIC and part of the control IC, automotive LED major manufacturers also reduced prices from Q4, the overall average reduction of about 3%-5%.

It is reported that the supply of automotive electronic components in 2023 to meet the rate of only about 80%. Automotive supply chain manufacturers said, IDM factory 2023 automotive chip supply is still "rationing system" based, can not effectively meet the needs of each car customers, the delivery cycle is still more than 16 to 18 weeks, is expected to fully restore normal supply may have to wait 2 years.

It is not difficult to find, power management chip as a large analog chip in the classification is benefiting from the rise of the new energy industry, especially after the wave of electrification of the car came, the overall demand showed explosive growth.

According to data previously released by STMicroelectronics, compared with traditional cars, a new energy vehicles need to use power management chips grew by nearly 20%, reaching 50. According to Frost & Sullivan estimates, the global automotive power management chip market will grow from $1.7 billion in 2020 to $2.1 billion in 2025.

 

 

In other words, automotive is expected to become the largest segment of the future domestic replacement market after consumer electronics. A report from Tianfeng Securities shows that driven by electrification and automation, the automotive segment has become the fastest growing segment for the entire power supply IC, with a compound annual growth rate of 9%.

Yole also expects that by 2026, all passenger cars and 80% of small commercial vehicles will be equipped with at least Level1 ADAS, which also greatly increases the demand for multi-channel power management chips.

Data show that the current drive IC manufacturers, automotive revenue generally falls below 10%, in addition to strong demand for drive ICs, in cost and design considerations, car manufacturers use a higher degree of integration of TDDI (touch and drive integrated chip). TDDI products, such as Wing and Duntech, have entered the supply chain of many car manufacturers.

Overall, drive IC manufacturers in the second half of the year in the face of weak consumer demand, making most of the operational performance is not more than the first half of prosperous, this year's operations also much more after the price increase dividend, gross margin gradually lower, but automotive products still maintain a solid growth force, will also be one of the important momentum to continue into next year.

According to industry sources, China Taiwan DDI packaging/testing service providers such as Nanmao and Chipbon have lowered their quotes by 3-5% due to weaker demand for display driver ICs (DDI).

Previously, Chairman of Nan Mao, Cheng Shih-Chieh, revealed that service providers and packaging material suppliers in Taiwan are offering "more flexible" quotes to DDI vendors to improve capacity utilization. "The capacity utilization commitment with our customers is about to expire and Nan Mao will provide more flexible quotes for 2023 to improve capacity utilization."

In addition, according to a new study by Omdia, demand for display driver ICs (DDICs) will decline 12% year-over-year to 7.8 billion units in 2022 compared to 2021 as demand continues to weaken in the second half of 2022. However, thanks to growth in the OLED sector and automotive applications, Omdia expects demand for DDICs to recover and achieve a 3% year-over-year increase in 2023.  

 

Even so, today, according to industry website statistics, the ratio of the number of up and down MCU product models in the last month is 81:19, the number of rising demand models is much larger than the number of declines, short-term demand weakness is alleviated. According to the group intelligence consulting data, 2022Q4 automotive MCU price increase ring than Q3 has improved, according to different models of different degrees of material shortage, the rate of increase between 2-5%. It is expected that new energy vehicles will maintain high growth rate in 2023, which will continue to drive the demand for automotive MCU to increase, and the price of automotive MCU is expected to continue to be firm.