Auto chips import dependence exceeds dependence on oil

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Over the past two years, there has been a crisis in the global semiconductor industry. Semiconductor production capacity is very low and automotive chips are the most affected.  As a result, many car brands have to announce production cuts. In addition, the price of automotive chips has risen by a dozen or even hundreds of times. However, China’s auto industry still relies heavily on imported chips.

Yesterday, China New Energy Vehicle Development High-Level Forum was held in China. Shan Jizhang, founder and CEO of Black Sesame Intelligence, said, “Relevant reports say that China’s auto chips’ external dependence exceeds its dependence on oil. We still depend on external oil. The degree is about 70%, and the auto chips reach 95%, and the dependence is very huge.”

Automotive chip industry pattern is changing

Shan Keizhang claims that the global automotive chip industry pattern is changing. Chinese manufacturers have great opportunities. In fact, some claim that these companies are on par with the world’s leading giant companies. He also adds

“In the past, the 40-nanometer chip in the car was already a very advanced process. However, now we have 7-nanometer chips in cars. It will not be too long before we have 5 nanometers or even 3-nanometer chips. Nvidia recently released a 4-nanometer chip. All meet or even exceed the requirements of the manufacturing process of consumer electronics products.”

Earlier this year, Yu Chengdong, CEO of Huawei’s consumer business and smart car BU, mentioned in an interview that when he first entered the automotive industry, he did not know that the shortage of cores in the automotive industry was so serious. Huawei had to buy a chip for as much as 2500 yuan ($351) and the car needs 9 chips at the time. He admits that the price is too expensive. He also claims that buying chips for this much may not be a good deal.