Automotive Chips Rose Across the Board!

Published: 11 March 2022 | Last Updated: 11 March 20221974
According to the financial report, the core chip of the body electronic stability system produced by STMicroelectronics used to cost only 20 yuan to buy. However, due to shortages and upselling, these chips have now been speculated to be nearly 3,000 yuan and are priced out of the market.
This video introduces the integration of chips in automobiles and the impact of 7/5nm on automotive SoC designs, how to trade-off power, performance, area, and reliability, and how ISO 26262 affects these variables.

Automotive Chip Design Workflow


According to the financial report, the core chip of the body electronic stability system produced by STMicroelectronics used to cost only 20 yuan to buy. However, due to shortages and upselling, these chips have now been speculated to be nearly 3,000 yuan and are priced out of the market.


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Auto chip prices are being hyped


But even with such a high price, it still attracts many companies to buy. The continuous rise of car chips also makes the overall price of cars rise. In the case of new energy cars, for example, after the chip rose, Xiaopeng Auto increased the cost of the whole car by 4,200-8,000 yuan. At the same time, Volkswagen's new energy cars have also increased in price across the board, once exceeding more than 6,000 yuan.


According to reports, the price of most automotive chips is currently rising, with small increases of several times. Since last year, the chip factory capacity in Southeast Asia and other places is affected by the epidemic thus experiencing a significant decline. At the same time, the supply of automotive chips exceeds the demand. In addition, the hoarding of chip dealers is also an important reason for the soaring prices of automotive chips. At present, the price of the chip is mainly divided into two kinds, one is from the chip manufacturers to book the licensed price, the other is the spot price provided by dealers, and the two prices are huge differences.


Gong Benxin, deputy general manager of Wuhan Linden Automotive Electronic Control Systems Co., Ltd, said that the line market is the original formal market, which has risen by 20 to 30 percent from 2020 to now. The secondary market rose very high, some chips may have been speculated to 100 times.


Car chip near crazy price increases, however, this situation is not the first time. For example, last year it was exposed to the media that a chip of less than 10 yuan was deliberately speculated to be more than 400 yuan by a company called Wisdom Electronics. In a few months, the company's chip prices increased 40 times, so the national market regulator fined the company 500,000.


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The price of automotive chips is difficult to measure


However, in addition to these, there are many people who sell chips, and chip dealers are also hoarding in a big way. This makes the inflow of chips to the market is very little, the downstream enterprises said outright that the inventory does not add up to more than a thousand. If people want to buy, it is estimated that they have to rely on luck. Even if people can get the goods, they need to wait in line for more than 400 days, and even some of the lines to 2023.


Faced with the current situation of chip shortage, chip manufacturers have started to add capacity. Domestic automotive chips have also come into the vision of car manufacturers. On the other hand, each car company also began to reduce the use of chips. General Motors said it will temporarily abandon the seat heating function. Toyota announced that it will lower its production target for March. Mercedes-Benz, for its part, is suspending orders for the German E-Class. However, industry insiders believe that the supply tension will continue in the short term.


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