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Foundries should allocate more capacity to EV chips

Friday, June 17, 2022

As handsets and consumer devices will continue to see sluggish sales prospects, automotive chip vendors hope foundry partners can again allocate more capacity for still-scant automotive chips, according to supply chain sources.

Car chip suppliers have managed to win a bit more capacity support from foundry houses in the second quarter of the year amid slackened chip demand for handsets and other consumer devices.

But the crunch of automotive chips still lingers disrupting production and shipments of cars, driving chip vendors to seek more foundry capacity supply, the sources said.

Some local wafer fabs reportedly are not running their mature-process capacity at full utilization, but they remain cautious about allocating the temporarily idle capacity to automotive clients, the sources continued, reasoning that foundries have to observe the overall market conditions in the months ahead before determining whether and how to adjust capacity allocations.

If weak sales of handsets, TVs and other household electronics persist, foundry houses will have more time to clear automotive-specs validations and then appropriate more capacity for automotive chips, the sources added.

By: DocMemory
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