This year, the world is facing an unprecedented shortage of automotive chips. Major automakers are forced to re-examine the chip supply chain. In addition, the demand for automotive chips for electric vehicles is heating up. In order to ensure stable supply, automakers have begun to form alliances with foundries, such as GM Intending to cooperate with TSMC (2330-TW) and many other semiconductor factories, Ford signed a strategic cooperation agreement with GF to jointly develop chips. The role of foundries in car factories is gradually undergoing a qualitative change.
In the past, automakers were accustomed to adopting a “just-in-time” manufacturing strategy. In the process of assembling cars, only the exact quantity of parts will be sent to the production line when needed, so that the component inventory is close to zero, in order to reduce space and financial pressure .
However, in the past year, the demand for the auto market after the epidemic has recovered more than expected. Automakers that had previously cut orders from chip vendors had to re-queue. In addition, the crowding effect caused by the demand for consumer electronics products and the unexpected impact of natural disasters such as the Texas blackout. Faced with a severe shortage of chips, production has to be reduced to cope with it.
After experiencing a severe chip shortage crisis, automakers re-examined the chip supply chain. In addition, as the trend of electric vehicles heats up, the importance of chips to automakers is indistinguishable, from controlling engines, windows, airbags, information and communication systems to ABS. And so on, there is no need for chips everywhere, so automakers are rethinking chip supply chain management methods.
Ford recently announced an alliance with GF, and signed a strategic agreement to jointly develop automotive chips, such as battery management systems and autonomous driving systems, and increase chip supply for Ford and even the entire US automotive industry.
GM also named it to cooperate with TSMC, Qualcomm, Renesas, NXP and many other semiconductor manufacturers to develop chips. GM President Mark Reuss said that automotive demand for semiconductors has doubled. Cooperating with semiconductor manufacturers to develop chips can ensure that chips meet the high-tech functional requirements of new car models, especially electric vehicles, and also improve supply stability.
On the other hand, Intel CEO Pat Gelsinger also previously called out to the car factory, “We need you, and you also need us. This is a symbiotic future. Let the car become a computer with tires.”
After Ford and GM took the first step towards vertical integration in the upstream, with the increasing importance of automotive chips, and in order to improve the management and control of the supply chain, more car manufacturers are expected to join the ranks in the future and adjust their supply chain management Strategy.
