2022 Outlook: Chip shortage continues and drives opportunities to tier 2 fabs
It won’t come as a surprise when I predict that the current chip shortage will continue to affect the industry throughout 2022. The shortage is there and it’s real. Most foundries are at or near maximum capacity and since consumer or OEM demand is not backing off, the supply shortage is set to continue throughout 2022, at least.
This won’t just affect when you get to upgrade your smartphones and tablets – the chip shortage is having a significant impact on the automotive market and that also is set to continue as the industry’s ‘chip needs’ expands.
Automotive systems may have accounted for a small percentage of chips manufactured by the tier 1 manufacturers (3-4% at TSMC for example, compared to close to 50% for consumer electronics) but the fact is the car industry’s needs are growing exponentially and inexorably.
The trends in vehicle electronics and systems – including the shift to electric vehicles in a race to meet global emissions targets – plus the move to a future of connected and autonomous vehicles (CAVs) – all lead to an increased demand for sensors. Today, an ‘average’ car might have 100 sensors, that number is set to rocket as vehicles become more automated and as functional safety requirements in CAVs necessitate increased volumes of sensors.
