News

NEWS CENTER

03

2023

-

02

What are the uses of stainless steel silo suppliers?


The automotive MCU market was originally monopolized by three foreign giants, but due to various factors, the production of the three giants has been affected. The production reduction caused by chip shortages has made automakers and parts manufacturers aware of the importance of supply chain diversification. Automakers and parts manufacturers are enhancing their overall supply chain risk management capabilities, accelerating supply source control, and building the integrity of the domestic supply chain. Therefore, domestic MCU manufacturers have been given opportunities. A considerable number of domestic manufacturers' MCU products have entered the supply chains of mainstream automakers. Saiteng Micro's mass-produced automotive OEMs include etc. The automotive-grade MCUs of have also entered multiple models of etc. Therefore, in the development process of the automotive chip industry, domestic automotive chip manufacturers that continuously undergo new metabolic processes based on the automotive supply chain may surpass some European and Japanese chip manufacturers whose actions are slower and less agile. The high viscosity of the automotive industry's upstream and downstream and the high reliability requirements for basic components determine that it is difficult for late-entry automotive chip manufacturers to enter the market. Focusing on the current supply problems, it is necessary to strengthen coordination and linkage among all parties, promote innovation and integration, and form a collaborative ecosystem.

The automotive MCU market was originally monopolized by three foreign giants, but due to various factors, the production of the three giants has been affected. The production cuts caused by chip shortages have made automakers and parts manufacturers aware of the importance of supply chain diversification. Automakers and parts manufacturers are enhancing their overall supply chain risk management capabilities, tightening control over supply sources, and building the integrity of their local supply chains. Therefore, domestic MCU manufacturers have been given an opportunity. A considerable number of domestic manufacturers' MCU products have already entered the supply chains of mainstream automakers. Saiteng Micro's mass-produced automotive OEMs include etc. 's automotive-grade MCUs have also entered multiple models of etc..

Therefore, in the development process of the automotive chip industry, domestic automotive chip manufacturers that continuously undergo new metabolic processes based on the automotive supply chain may surpass some European and Japanese chip manufacturers whose actions are slower and less agile.

The high viscosity of the automotive industry's upstream and downstream sectors and the high reliability requirements for basic components determine the difficulties faced by latecomers in entering the automotive chip market. Focusing on the current supply problems, it is necessary to strengthen coordination and collaboration among all parties, promote innovation and integration, and form an industrial chain model that integrates the automotive industry (automakers, parts suppliers) and the chip industry (chip design, chip manufacturing), allowing upstream and downstream sectors to better cooperate.

As purchasers and suppliers of digital management tools, digital procurement manufacturers naturally possess the basic conditions for supply chain financial services, namely, supply chain scenarios. Enterprise procurement inevitably requires the support of financial products such as payments, credit, and insurance. By cooperating with banks and other financial institutions, digital procurement manufacturers can provide small and micro-suppliers with convenient, reasonably priced, and collateral-free financing methods. Conducting supply chain financial business can promote the utilization of funds by both supply and demand parties, and can also enhance customer stickiness to management tools through two-way empowerment, which will be an effective means for digital procurement manufacturers to expand revenue sources and enhance their competitiveness.

Automotive chips involve issues such as automotive-grade certification cycles, surges in demand, and supply chain system management. Even though many domestic manufacturers have entered the automotive chip market in recent years, there is still a long way to go before their products can be mass-produced and supplied to automakers after completing certification testing. Generally speaking, semiconductor manufacturers that are new to the mainstream automotive field typically take at least two or three years to obtain certification. Even if they have semiconductor production capacity, it takes about half a year to complete the process conversion.

The automotive industry is very conservative. In the past, there were no opportunities, and they were unwilling to use new supplier products. With technological iteration and chip shortages, automakers will choose products from more innovative technology companies and are willing to cultivate domestic suppliers. If they can enter the automotive manufacturers' supply chain system before 2025, there will be many opportunities in the future.