There is a shortage of automotive chips and manufacturing depends on Asia

The annual growth rate of the global semiconductor market by 2025 is 6.5%, an increase of 1 percentage point over the past five years. However, the global market share of European semiconductors will drop from the current 9% to 8% in 2025. Although Europe is actively building a semiconductor industry chain and moving towards the goal of self-made chips, according to research, Europe's dependence on Asian chips will continue to increase in the next few years.

 

Local automakers must reduce their reliance on Asian chips, otherwise the crisis of plant shutdowns in the entire region will be staged again.

 

Traditional European automakers-Daimler, BMW and Volkswagen have all warned that the European auto industry is still severely affected by the shortage of chips, and this trend will continue until at least next year. If scarce inventory is not enough to push up vehicle prices, automakers may consider cutting sales of models.

 

Due to the lack of sufficient chips, the number of new car registrations in the EU passenger car market this year decreased by 23.2% year-on-year in July, and the number of new car registrations continued to shrink in August, down 19.1% year-on-year, with sales of 622,993 vehicles. Not only did this figure fall short of the worst period of the new crown pneumonia epidemic last year, it even set the worst monthly performance since the European debt crisis resumed in 2013.

 

In September, car sales in Europe dropped another 23% to the lowest level since 1995.

 

Although Intel, TSMC, etc. plan to set up factories in Europe, it often takes several years for a fab to be put into operation. At present, most of the global chip production has been transferred to low-cost labor areas such as Asia, and the European region still faces the risk of supply interruption. . Manufacturers will be willing to trade a little higher price in exchange for a sufficient supply of chips.