There are many automobile “cores”. How important is the acquisition of Xingang by Anshi?

On July 5, Wingtech’s wholly-owned subsidiary Anshi Semiconductor announced that it has completed the signing of a transaction agreement for the acquisition of Newport Wafer Fab in the United Kingdom. In the context of the global automotive industry facing a “chip shortage”, this acquisition can help Nexperia achieve growth goals and investment, and further increase global production capacity. In order to resolve the issue of automotive “core”, IDM and fabs, including Nexperia, are actively increasing production capacity and seeking more agile and effective synergistic interactions between the upstream and downstream of the industrial chain.

There are many automobile “cores”. How important is the acquisition of Xingang by Anshi?

Expand the market share of automotive-grade products

Automotive-regulated semiconductors are one of the fastest-growing market segments in the world, and they have increasingly become a point of struggle for international semiconductor companies. According to statistics from IHS Markit, Nexperia’s automotive power MOSFET shipments rank second in the world. The acquisition of the Xingang fab will enhance Nexperia’s ability to supply products that meet vehicle-level standards and expand its market share.

It is reported that the Xingang Semiconductor production plant has a monthly production capacity of more than 35,000 8-inch wafers, and can provide MOSFETs and trench IGBTs using wafer thinning methods, as well as products such as CMOS, analog and compound semiconductors.

Zhang Xuezheng, Chairman of Wingtech Technology and Chairman and CEO of Nexperia Semiconductor, stated that Nexperia will increase its investment in the Xingang fab and continue to maintain its important position in the local semiconductor ecosystem. The addition of Xingang fab will effectively enhance Nexperia’s IDM capabilities in automotive-grade IGBT, MOSFET, Analog and compound semiconductor products.

Achim Kempe, chief operating officer of Nexperia Semiconductor, said that the addition of Xingang fab will help meet the growing global market demand for semiconductors. The Xingang plant has a skilled operations team that will play an important role in ensuring the continuity of supply.

International manufacturers actively expand production to cope with the tide of automotive core shortage

“Lack of cores” has become a lingering haze in the development of the automobile industry. In the fourth quarter of last year, the production of some Volkswagen models was affected due to chip shortages, which also brought the core shortage problem into the public’s field of vision. After more than half a year of adjustment, the core shortage problem has not been effectively alleviated. Last Friday, BMW said that the global shortage of automotive chips has not yet eased, and the supply will continue to be tight in the second half of this year, which will also affect the output of automakers.

In this situation, “expansion” has become a key word for IDM and major wafer suppliers.

Before announcing the acquisition of the Newport fab, Anshi Semiconductor launched a new 8-inch wafer production line in Manchester, UK last month to achieve rapid expansion of production capacity.

“In the context of a global semiconductor shortage, Anshi actively invests in global manufacturing plants to increase production capacity, including MOSFET production equipment in Manchester and the Philippines. This is good news for buyers. The performance of the new MOSFET also excites designers. These MOSFET is very suitable for a variety of switching applications, and can also replace other suppliers’ products.” Anshi product manager Mike Becker pointed out.

At the beginning of this year, Anshi Semiconductor’s parent company Wingtech’s 12-inch automotive-grade power semiconductor wafer manufacturing project started in Lingang’s new area. It is expected to produce 400,000 wafers per year, and the annual output value will reach 3.3 billion yuan after it reaches production.

Intel said in April that it will open its existing factories to automotive chip companies and begin producing chips in its new factories within 6 to 9 months to solve the problem of chip shortages in the US automobile manufacturing industry.

TSMC also pointed out in a statement in April that the company’s board of directors approved a capital plan of US$2.887 billion for the installation of mature technology capacity. This move aims to meet the growing structural demand and ease the global chip supply challenge that has expanded from automotive chips to the global semiconductor industry.

According to SEMI statistics, global semiconductor manufacturers will start building 19 new high-capacity fabs before the end of this year, and start construction of 10 more in 2022 to meet the market’s accelerated demand for chips, including communications, computing, and medical care. Healthcare, online services and cars. SEMI President and CEO Ajit Manocha said that as the industry strives to solve the global chip shortage, the equipment expenditures of these 29 fabs are expected to exceed 140 billion U.S. dollars in the next few years.

Capacity expansion is only the beginning of solving the problem

Although the main manufacturers have shown a strong momentum of expansion and the intention to further tilt their production capacity to automotive-grade chips, the lack of cores for automobiles is a comprehensive problem, and the expansion of production capacity is only the beginning of solving the problem.

Insufficient connection between supply and demand is one of the core factors leading to the lack of cores in this round. Bu Rixin, general manager of InnoPath Investment Consulting, pointed out to the reporter of “China Electronics News” that the “chip shortage” in the automotive industry is caused by many reasons. The core factors include supply chain reasons and the reasons for the capacity planning of chip design companies in 2020. . In terms of the supply chain, due to the industry’s general concerns about the lack of cores, the phenomenon of hoarding, rushing, and overstocking has aggravated the shortage of chips; in terms of production capacity planning, due to the impact of macroeconomic environment and epidemic factors, many cars Chip companies are relatively pessimistic about the development of the industry and did not place orders with fabs in advance, resulting in insufficient capacity allocation.

To solve the problem of core shortage, upstream and downstream enterprises need to collaborate and interact more quickly and effectively. Pat Kissinger also said that the lack of core in the automotive industry has brought to the industry the enlightenment that the semiconductor global supply chain synergy needs to expand the scope and include customers and users. It is precisely because automobile manufacturers have not accurately predicted market demand, which has led to the allocation of more production capacity to other fields in semiconductor manufacturing, and the semiconductor industry needs closer and agile interaction across the entire chain.

“If the past year has taught us some lessons, it is: the entire supply chain must be able to change with demand, to ensure that no bottlenecks will limit industry growth.” Pat Kissinger said.

For the local supply chain, it is imperative for upstream and downstream companies to “sit at the same table”. Vimicro CTO Zhang Yinong once told reporters that when chips are in short supply, automakers and chip manufacturers are required to “sit down” to solve various chip problems and improve the quality of chips. Huang Jipo, general manager of Saiteng Microelectronics, also pointed out to reporters that the core shortage crisis has affected multiple links in the upstream and downstream of the industry chain, and the unilateral efforts of chip manufacturers alone are not enough to help the entire industry smoothly get out of its predicament and achieve a healthy development of the entire industry. In-depth communication between upstream and downstream manufacturers is also needed for common development.

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