Shulou(Shulou.com)11/24 Report--

On August 15, according to DIGITIMES, industry insiders revealed that despite the rapid slowdown in mass market demand for chips, demand for automotive chips remains strong, and suppliers are striving for more available fab capacity in the fourth quarter of 2022.

Suppliers engaged in the automotive industry's supply chain are actively negotiating with foundry manufacturers about available fab capacity in the fourth quarter and are striving for additional capacity support in that quarter, the source said.

On the other hand, sources point out that the slowdown in demand for personal computers and other consumer electronics applications has been a drag on capacity utilization at contract factories. Still, orders for automotive chips make up only a fraction of the capacity gap in the third quarter.

Sources said that in the fourth quarter of 2022, foundry factories that are unable to fill their fab capacity with more car chip orders, especially the second echelon foundry, will still see a significant decline in capacity utilization.

For front-line foundry, only 5-10% of fab capacity in the fourth quarter will be affected by weak mass market orders, sources said.

At present, automotive chips that are seriously in short supply include MCU and IGBT. Sources pointed out that the supply of industrial-grade MCU and other IC is still relatively tight, which also prompted relevant chip suppliers to compete for more available capacity in the fourth quarter.

However, since industrial IC takes less time to verify than automotive chips, industrial chip orders are likely to fill the capacity gap left by contract manufacturers in PC and other consumer electronics chip customers more quickly.

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