In the transformation and upgrading of China's automobile industry, the use of domestic automotive chips is becoming an important indicator to measure technological autonomy and industrial security. In the past five months of 2024, the use of domestic automotive chips has reached an unprecedented scale, behind which is the independent and controllable strategy promoted by the State-owned Assets Supervision and Administration Commission and the rise of the domestic chip industry. In this article, China Overseas Semiconductor Network will analyze this phenomenon in depth and discuss whether the current domestic automotive chips have the ability to shake the status of giants in the international market.
The first China (Chongqing) Intelligent Vehicle Basic Software Ecological Conference and the 3rd China Automotive Chip Summit Forum was held from June 17th to 18th, Gou Ping, member of the Party Committee and deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, delivered a speech pointing out that in the first five months of this year, CETC, China Resources Group, and CRRC Group sold a total of 235 million automotive chips, of which, FAW, Dongfeng, and Changan, the use of domestic chips reached 132 million, which not only shows the rapid growth of the domestic chip industry, but also reflects the firm determination of the SASAC in promoting the independence and controllability of the automobile industry chain. For example, Changan Automobile's new energy vehicle sales in 2023 will significantly increase the proportion of domestic chips, which is due to Changan Automobile's continuous investment and technological innovation in intelligence and electrification.
Figure: Domestic automotive chips are on the rise
The policy guidance of the State-owned Assets Supervision and Administration Commission (SASAC) has played a key role in the use of domestic chips by central automotive enterprises. Through policy guidance and resource integration, the State-owned Assets Supervision and Administration Commission (SASAC) is promoting the acceleration of technological innovation by central automotive enterprises and increasing the proportion of domestic chips. This strategy not only helps to enhance the competitiveness of the domestic chip industry, but also reflects the reduction of dependence on the international market.
Although the domestic automotive chip industry has made significant progress, it still faces many challenges. With the increasingly fierce competition in the international market and the acceleration of technology iteration, domestic chip companies need to continue to innovate and improve product competitiveness. However, with the rapid development of new energy vehicles, the demand for chips has increased significantly, providing a huge market space for the domestic chip industry.
Infineon is the company with the largest share of the global automotive chip market with a market share of 12.7 percent. It offers a wide range of automotive semiconductor products, including microcontrollers for engine management, body control, and safety systems. NXP is also a major player in the global automotive chip space, providing solutions for a variety of automotive applications, including in-vehicle infotainment systems, autonomous driving assistance systems, and more. There are also Renesas Electronics, Texas Instruments, STMicroelectronics, etc., all of which are good at the global automotive chip field.
The size of the global automotive chip market is growing rapidly. According to relevant data, the global automotive chip market size will be about $50.47 billion in 2021 and is expected to reach $55.92 billion in 2022. With the trend of automotive electronics and intelligence, the demand for automotive chips is also growing rapidly.
In the face of the rise of domestic automotive chips, international giants may have a variety of reactions. On the one hand, they may increase their investment in the Chinese market and maintain their market position through technological innovation and market strategies. On the other hand, international giants may also seek to cooperate with local Chinese companies to achieve a win-win situation through technical exchanges and market cooperation. In addition, in the face of fierce market competition, international giants may also strengthen their competitiveness through mergers and acquisitions, strategic investment, etc.
Whether domestic automotive chips can shake the status of international giants lies in technological innovation and market recognition. At present, domestic chip companies have shown strong competitiveness in some fields, such as in emerging fields such as Internet of Vehicles and intelligent driving. Through cooperation with domestic and foreign automobile companies, domestic chips are gradually expanding their influence in the international market.
In general, the use of domestic automotive chips has increased significantly, marking a solid step forward in China's auto industry on the road of independence and control. With the continuous maturity of technology and the continuous expansion of market applications, domestic automotive chips are expected to play a more important role in the future automotive industry. In the face of competition in the international market, the domestic chip industry should continue to increase research and development efforts, improve the technical level, and expand market applications to achieve higher-quality development. At the same time, the central automobile enterprises should also strengthen cooperation with domestic chip enterprises, jointly promote the transformation and upgrading of the automobile industry, and contribute to the construction of an automobile power. With the continuous maturity of domestic chip technology, we have reason to believe that domestic automotive chips will occupy a place in the global automotive industry.
