On the 14th of the trading day, the concept of automotive electronics made a strong push up. As of the time of publication, Xinyuan Shares rose by more than 10%, while Zhongci Electronics, China Automotive Research and Development Corporation, and Shenda Shares rose by the limit. Daotong Technology rose by nearly 9%, while Hanchuan Intelligence, Minxin Shares, Jinlong Electromechanical and others rose by over 7%.
Recently, Chen Shihua, Deputy Secretary General of the China Automobile Association, said that the chip shortage began in late December last year, which will have a great impact on the production in the first quarter of 2021, and may have an impact on the second quarter.
According to reports, the shortage of automotive chips seems to be a global issue, not just in China. Due to chip shortages, several automotive giants including Ford, Fiat Chrysler, Toyota, and others have announced plans to reduce car production. Volkswagen announced at the end of last year that it will adjust production in factories in China, North America, and Europe.
Analysts say that nowadays most cars require at least 40 types of chips, and high-end models have as many as 150 types. As long as some are lacking, it will affect production. As the automotive market gradually recovers in the second half of the year, especially in China, chip manufacturers no longer have the capacity to cope with the explosive demand for automotive chips, leading to a stagnation in the supply of automotive chips.
Faced with the shortage of automotive chips, manufacturers have increased production speed on one hand, and on the other hand, they have also resorted to tactics to raise the price of automotive chips. Industry insiders believe that it is unlikely that the tight production capacity will be alleviated in the short term, and the price increase trend of the entire industry chain in 2021 is expected to continue for a long time.
Wanlian Securities pointed out that since December last year, many car companies have started to stop production one after another, with North and South Volkswagen being the first to be affected, mainly due to insufficient supply of automotive chips, especially high-end semiconductor chips. The application of chips in the automotive field is very extensive, which is a prerequisite for achieving automotive information perception and control. The import rate of domestic automotive chips is as high as 95%, among which key chips such as power systems, chassis control, and ADAS are monopolized by foreign giants. The epidemic has affected overseas chip supply, and some automotive companies may have limited production capacity in the short term. In the medium to long term, it reflects the urgent need for domestic automotive chips to be replaced independently, It is beneficial for domestic independent chip enterprises and independent research and development ADAS enterprises to accelerate their development, and it is recommended to focus on it.