Pure-play foundries see the automotive segment play an increasingly important role in their revenue, according to market sources.

Foundries asks for about 15% higher quotes for automotive ICs than chips for use in consumer electronics and other mass-market applications, because automotive applications have high requirements due to safety and quality concerns, the sources said.

Car vendors have also moved to directly request foundry capacity support, a job they used to have their suppliers handle, the sources said.

Amid the current shortage in foundry capacity, IDMs and fabless firms are more willing to pay more to secure more capacity for automotive chips, the sources noted. Despite smartphones and other mass-market applications still playing a main role in foundries' revenue, the foundries may see sales generated from the auto sector grow substantially over the next two to three years, the sources said.

By: DocMemory
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