With mature-process automotive chips still in short supply, some automakers worldwide are moving to have their chips fabricated with advanced process nodes, especially for new car models and EVs.
A McKinsey analysis indicates that automotive chips manufactured with process nodes 90nm and above will remain in short supply for a long while, as most OEMs are still reluctant to upgrade their chips because they have to face high costs of replacement designs and certifications, in addition to the safety tests required for new chips.
McKinsey estimated that 90nm and above automotive chips will still account for 67% of total demand for car chips by 2030, and their global supply will see a CAGR of 5% during 2021-2026, indicating that such chips will remain in tight supply in the years to come.
But automotive supply chain players are moving to incorporate advanced-process chips into new car models, which involve comprehensively new designs, certifications and volume production, skipping the chip segments in severest shortages. They are also trying to adopt new-process chips for their existing car models to ease mature chips shortages, sources said.
Usually, it will take 3-5 years for mainstream automakers in the US, Europe, Japan and South Korea to design, test, and validate new chips for traditional car models, and they will be gradually on track to adopt new-process chips for both traditional car models and new EVs. Tesla and EV makers in China boast higher flexibility in designing new EV chips and are more willing to adopt more-advanced process nodes.
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