Shanxi Foundry Society

In recent years, the shortage of car chips has seriously constrained the production of the car industry. Firstly, the most obvious is the reduction in sedan production.

By May 2022, global sedan production had decreased by approximately 1.69 million units. Secondly, the configuration of cars that have been reduced in production is also decreasing. Due to the shortage of chips, some new cars cannot provide full configuration, and some unnecessary functions are "trimmed". BMW has abolished the contact function of the central information display screen in multiple models. It can be seen that the shortage of car chips has caused the loss of market share and audience for major car companies, which is also an unavoidable situation in reality.

The 'chip chaos' seems to have eased, but is it still lacking?

On May 26th, He Xiaopeng, CEO of Xiaopeng Motors, posted a video on his personal Weibo account. In the video, Ke Daka held up a piece of paper with the urgent need for chips and stated that with the gradual recovery of the car supply chain, his supply chain team is still in a state of urgent need for chips. Recently, we have carefully reviewed again and found that the absolute number of chips in a smart car is over 5000, covering hundreds of types... In fact, most of the short chips are cheap ones

Elvis Hsu, General Manager of CINNO Research's Semiconductor Division, stated in an interview with China National Radio that he believes there are three main reasons for the shortage of car chips: firstly, the significant increase in chip demand driven by smart cars, resulting in a lack of overall production capacity supply; secondly, improper allocation of industrial supply chains; and thirdly, a long verification cycle and insufficient expansion of production.

However, recent reports have indicated that European car manufacturers such as BMW, Mercedes Benz, and Daimler Trucks have obtained sufficient chip components to produce at full capacity. Industry insiders have indicated that since the increase in global chip market supply in the second half of last year, the structural shortage of the chip market has eased to some extent.

In addition to chips, many friends have been searching for ways to supply scarce component materials recently. In order to better serve us, Xinyongsen has specially opened up channels for supplying scarce component materials.

Increase investment to stimulate capacity expansion

The problem caused by the shortage of chips has prompted many countries to compete in expanding their chip manufacturing capabilities. Samsung, Intel, TSMC, the European Commission and other institutions and arrangements are taking various actions.

Upstream and downstream cooperation expands research and development investment

In the "2022 China Printed Circuit Board Professional Market Outlook and Investment Research Report (Simplified Version)", it is proposed that from the perspective of the proportion of downstream use of printed circuit boards in the market, the current proportion of printed circuit boards in car electronics in China is 15%.

Car electronics benefit from the continuous development of printed circuit boards, and chip suppliers and car companies are also connected by upstream and downstream cooperation. The joint cooperation of the three is expected to promote the balanced development of supply and demand in the market.

Proportion of downstream use of printed circuit boards in China

Recently, Xinyongsen's circuit board has officially passed NSF quality testing and met the requirements of IATF 16949 standards, and has been awarded the certification of professional quality management system for sedans recognized by international authoritative institutions! Product quality meets high reliability requirements!

There is also a major challenge faced by electronic companies - the procurement of electronic components, which is time-consuming, labor-intensive, and extremely inefficient.