Import rate of more than 90% China’s car chip drought fears up to 10 years

The global supply of automotive chips exceeds the demand, making China, a major automotive producer and seller, feel deeply. China Automotive Chip Industry Innovation Strategic Alliance points out that China’s automotive chip import rate exceeds 90%. The general manager of China New Energy Vehicle Technology Innovation Center, Yuan Chengyin, even pointed out that the shortage of automotive chips in China may last up to 10 years.

According to China Newsweek, in recent years, with the increasing degree of electrification, intelligence and networking of automobiles, chips have been widely used in automobiles.

Affected by the new crown pneumonia (Chinese communist virus) Epidemic, the global auto market hit a low point in the first half of last year, and car manufacturers have sharply cut orders for automotive chips. However, in the second half of last year, the global automotive market has steadily recovered, especially the rapid recovery of the Chinese car market in China, which quickly pushed the demand for chips to grow significantly. In addition, extreme weather and natural disasters have further exacerbated the chip crisis.

The report pointed out that in this round of automotive chip shortage crisis, China as the world’s largest new car production and sales market, revealing a long history of serious external dependence on automotive chips, “neck” problem is further highlighted.

China Automotive Chip Industry Innovation Strategic Alliance data show that the scale of China’s independent automotive chip industry in 2019 accounted for only 4.5% of the world, China’s automotive chip self-research rate of only about 10%, the automotive chip import rate of more than 90%, China’s automotive chip market has basically been monopolized by foreign enterprises.

According to the report, many Chinese car manufacturers are now actively layout automotive chips. China’s only technology factory “Horizon” has the ability to mass production of vehicle-grade smart chip front-loading, recently completed the C3 round of financing for a number of automotive industry chain upstream and downstream enterprises to participate, including BYD, Great Wall Motor, Changjiang Automotive Electronics, Dongfeng assets, etc..

Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, said that the current global shortage of automotive chips will not be alleviated until at least the 3rd or 4th quarter. But from the current technical level, China’s automotive chips to achieve domestic replacement, may have to wait until 3 to 5 years later.