Raw material costs continue to rise, it is said that the price of automotive chip IDM will increase by 10-20% next year
Oct 21,2021
According to industry insiders, in order to cope with the continuous price increase of raw materials such as copper, gold, oil and silicon wafers, IDMs such as Infineon, NXP, Renesas, TI and STMicroelectronics are preparing to increase their quotations for automotive chips in 2022 by 10%. %-20%.
"Electronic Times" quoted the above-mentioned person as saying that more details of IDM's new round of price increases are not yet clear, but automakers will definitely see chip costs rise next year. In the previous few months, the prices of some chips with severe supply shortages have risen sharply.
At the same time, China's curtailment measures are having another major impact on the global automotive supply chain. The source emphasized that because magnesium is a key aluminum alloy material for manufacturing gearboxes, steering columns, fuel tank covers and seat bases and other mechanical metal parts, its production is decreasing sharply, threatening the continuity of automobile production.
China currently accounts for 85% of the global magnesium supply, and Shaanxi Province is the main manufacturing base with about 50 magnesium smelters. However, according to sources, under the local government’s curtailment measures, half of them have been required to stop production, and the other half are operating at 50% capacity.
The source said that European magnesium stocks will be used up within a few weeks, and the supply interruption of this material may weaken the supply capacity of the entire automotive supply chain, because there is no substitute for magnesium in the production of aluminum alloy mechanical parts. In the past month, the import price of magnesium in Europe has risen by 75%.
Although compared with the tight supply of automobile chips, the stock of metal mechanical parts used in automobile production is sufficient, but the person said that if the curtailment measures continue, it may soon become a shortage, which will affect automobile production.
It should be pointed out that since the third quarter of 2021, global automakers have reduced their sales growth forecast for this year from 15% to less than 10% due to the increasing difficulty in ensuring the supply of key components.
"Electronic Times" quoted the above-mentioned person as saying that more details of IDM's new round of price increases are not yet clear, but automakers will definitely see chip costs rise next year. In the previous few months, the prices of some chips with severe supply shortages have risen sharply.
At the same time, China's curtailment measures are having another major impact on the global automotive supply chain. The source emphasized that because magnesium is a key aluminum alloy material for manufacturing gearboxes, steering columns, fuel tank covers and seat bases and other mechanical metal parts, its production is decreasing sharply, threatening the continuity of automobile production.
China currently accounts for 85% of the global magnesium supply, and Shaanxi Province is the main manufacturing base with about 50 magnesium smelters. However, according to sources, under the local government’s curtailment measures, half of them have been required to stop production, and the other half are operating at 50% capacity.
The source said that European magnesium stocks will be used up within a few weeks, and the supply interruption of this material may weaken the supply capacity of the entire automotive supply chain, because there is no substitute for magnesium in the production of aluminum alloy mechanical parts. In the past month, the import price of magnesium in Europe has risen by 75%.
Although compared with the tight supply of automobile chips, the stock of metal mechanical parts used in automobile production is sufficient, but the person said that if the curtailment measures continue, it may soon become a shortage, which will affect automobile production.
It should be pointed out that since the third quarter of 2021, global automakers have reduced their sales growth forecast for this year from 15% to less than 10% due to the increasing difficulty in ensuring the supply of key components.