In the past two days, there has been a big news circulating in the automotive industry. It is reported that due to insufficient chip supply, SAIC Volkswagen has ceased production on December 4, and FAW-Volkswagen has also entered a state of suspension from the beginning of this month. Is the news true?
News said that the "lack of core" was transmitted to the automotive industry
According to media reports, the issue of tight capacity in the semiconductor industry affects not only the consumer electronics industry, but now the issue of "lack of core" has also been transmitted to the automotive industry.
The shortage of automotive chips this time will cause ESP (Electronic Stability Program System) and ECU (Electronic Control Unit), namely the on-board computer, to fail to produce. Affected by the interruption of chip supply, car companies will face the risk of production suspension. In the last month of
's sprint for sales in 2020, mid-to-high-end automakers face the risk of discontinuing production, which has a significant impact on the market, and it is not clear when the core shortage problem will be resolved.
It is understood that SAIC Volkswagen and FAW-Volkswagen are the first to bear the brunt of the production shutdown.
It is understood that the main reason for the suspension of production of North and South Volkswagen is the insufficient supply of high-end chips. "It should be said that high-end products, as long as the products equipped with ESP and ECO will encounter production problems, but because Volkswagen is basically equipped with it, it has the greatest impact." A person familiar with the matter said. According to a report from the media "Yuguan Auto Market", a production manager of SAIC Volkswagen revealed in an interview, "Without these chips, we can only stop production." The person said. In addition, FAW-Volkswagen will also enter a state of suspension from December. According to previous estimates of production capacity, the combined output of the two Volkswagens in North and South alone exceeded 200,000 in December. As for when production will resume, it is currently unknown.
The main domestic suppliers of this product are Continental and Bosch's two component suppliers. Affected by the interruption of chip supply, the two component giants also face the risk of shutdown of the business. At present, Continental's ESP (Electronic Stability Program System) inventory is only about 10,000 sets, which has been unable to meet market demand. According to the current situation, nearly 15% of China's auto production capacity has been affected.
According to data released by the China Association of Automobile Manufacturers on November 4, in October 2020, the production and sales of automobiles were 2.552 million and 2.573 million, respectively, an increase of 0.9% and 0.1% from the previous month, and an increase of 11.0% and 12.5% from the same period last year. As of this month, automobile production and sales have shown growth for seven consecutive months, and sales have maintained a growth rate of more than 10% for six consecutive months.
Obviously, since the domestic new crown epidemic was fully controlled in March this year, the domestic auto market is recovering rapidly. Coupled with the recent domestic support policies for new energy vehicles, domestic automakers are also actively producing to meet the outbreak of market demand. However, who would have thought that the lack of "core" has become a "nightmare" for automakers.
If the chip supply problem cannot be alleviated within December, it is estimated that 15% of domestic automobile production capacity will be affected, which means that in December alone, the production of nearly 400,000 vehicles in the country may be affected. The impact is really great. The official response came from
According to CCTV Finance, Xu Ying, the relevant person in charge of the public relations department of Volkswagen Group (China), said that the uncertainty brought by the new crown pneumonia epidemic has affected the supply of chips for some specific automotive electronic components. The overall recovery of the Chinese market has also further promoted the growth of demand, making the situation more severe and causing some car production to face the risk of interruption.
Volkswagen China responded that although chip supply has been affected, the situation is not as serious as the rumors and is currently seeking a solution.
Xu Ying said that we are paying close attention to the development of the situation, and we have also coordinated with the headquarters and related suppliers to actively take countermeasures. Currently, customer delivery of related vehicles has not been affected.
SAIC Volkswagen said that the production of new cars has indeed been affected to a certain extent, but the company has not stopped production as rumored. A relevant person from SAIC Volkswagen said, “This is not an emergency, we have been prepared for it. The chip market supply is a global issue, and it is not only the automotive industry that affects the automotive industry, but also the automotive industry.”
and the formation of chip shortages In contrast, automotive chip suppliers have begun to "raise prices." nearOn November 26, the leading automotive chip manufacturer NXP (NXP) price increase letter came out again: On November 26, NXP told customers that due to the impact of the new crown epidemic, NXP is facing the dual impact of severe product shortages and increased raw material costs, and decided to adjust the entire Increase product prices. According to industry insiders, the wafer supply will continue to be tight in the coming year, and the price increase of NXP products may start from 5%. Some products require customers to sign a one-year NCNR (no cancellation or return) agreement.
Prior to this, the market also reported that Nissho Renesas (Renesas) will adjust the prices of products such as power management ICs from January 1 next year. It is understood that Taiwanese manufacturers such as the new company may consider the possibility of negotiating some product price adjustments to reflect the cost. In addition, Mao Da said that there is no plan to increase the price, unless the upstream foundry price is fully increased, it will discuss with customers, otherwise it will not actively increase the price.
Source: China Fund News (ID: Chinafundnews)
