[Compiled by Wei Guojin/Comprehensive Report] US sanctions on Huawei and SMIC have triggered an upsurge of stockpiling of Chinese chips, which has led to a tight chip production capacity across the board. Chinese media reported that there is a shortage of chips in everything from automobiles, consumer electronics to the Internet of Things; a person in charge of a company engaged in automotive chip design sighed: “This is the worst time I have encountered a shortage in 30 years of business.” Experts speculate that the tight production capacity may continue at least into the first half of next year.
China’s “Economic Observer” reported that in the semiconductor industry chain, the upstream felt the pressure of shortages; an foundry manufacturer said that at the beginning, the foundry would give priority to large factories’ capacity and cut orders from small factories, but today , Not only cut orders from small factories, but also can’t handle orders from large factories.
According to the report, an automotive chip design industry said, “The production capacity has been tight since the beginning of last year. At first, you can say good things, queue up, or get production capacity from the foundry. Until September or October of this year, no matter how you do it. It’s production capacity.”
He revealed that some companies will not even be able to get the chips until the second quarter of next year. Faced with automakers, they have to repeatedly delay delivery. He added that automotive chips are not often out of stock or out of stock because they are part of the chip industry. It is very rare for a category with a longer cycle and a more stable system to have a serious shortage of goods.
Industry insiders pointed out that the shortage of chips is not limited to automobiles, and not only in China, but 8-inch wafers are the most urgent at present. Such chips are used in automotive chips, consumer electronics and the Internet of Things, which are the most severely out of stock. .
Zhu Jing, deputy secretary-general of the Beijing Semiconductor Industry Association, said that the shortage of wafers and price increases have spread from integrated circuit foundry, packaging to design, covering many aspects of the semiconductor industry; from the perspective of order status, semiconductor foundry capacity is expected to be tight. It is estimated that it will continue at least into the third quarter of next year.
He said that since the US government enacted the Huawei ban, terminal manufacturers in many industries have stepped up stockpiling. Some major mobile phone manufacturers have begun to stock chips in the middle of the year. The price of mobile phone chips has risen, coupled with the construction of 5G networks, and 5G base stations. The demand for chips reaches its peak. If the United States further sanctions relevant Chinese foundry, packaging and testing manufacturers, the global semiconductor supply chain will also fall into chaos next year.