As the automotive industry gradually transitions to electric vehicles (EVs) and advanced driver assistance systems (ADAS), the supply chain is undergoing a profound transformation. Recent semiconductor supply shortages and the continued growth in demand for chips per vehicle are forcing semiconductor suppliers, Tier 1 component suppliers, and automakers to revisit their supply assurance strategies, taking into account the growing importance of semiconductor and software differentiation.
With the rise of electric vehicles (EVs) and advanced driver assistance systems (ADAS) technology, the semiconductor devices required per vehicle have become more diverse and complex, which has created significant benefits for semiconductor suppliers. The demand for semiconductors in these emerging technologies has increased significantly compared to traditional internal combustion engine vehicles. In particular, as the industry moves toward more advanced autonomous driving capabilities, the demand for advanced logic integrated circuits (ICs) and related software platforms has grown. At the same time, the demand for cutting-edge semiconductor manufacturing processes is also increasing in order to support the application of artificial intelligence (AI) technology inside vehicles.
In the electric vehicle (EV) sector, the demand for semiconductors in the powertrain is particularly acute. These power semiconductor devices are responsible for converting the DC voltage from the battery to the AC voltage required to run the motor. In the past, silicon insulated gate bipolar transistors (silicon IGBTs) were the dominant technology in this field. Now, however, the industry trend is shifting toward the use of higher-performance wide-bandwidth (WBG) semiconductor materials, such as silicon carbide (SiC) and gallium nitride (GaN). In particular, the demand for SiC MOSFETs is growing rapidly to accommodate the specific needs for high-performance semiconductors in electric vehicles.
In the automotive industry, OEMs (original equipment manufacturers) are facing the need for security and reliability of supply, while semiconductors are gaining importance in their strategy. This situation is driving a reconfiguration and rethinking of the supply chain. In this process, a number of strategic shifts are gradually taking place:
First, semiconductor industry players have been supplying products directly to automotive OEMs. This direct supply relationship has prompted semiconductor suppliers to shift their product strategy so that they are not just providing standard integrated circuits, but are moving towards providing more integrated, customized automotive solutions.
Second, OEMs are actively building their own semiconductor capabilities, including IC design capabilities (similar to fabless semiconductor companies that design but do not manufacture) or design IP at the module level, to enhance their technical strength and market competitiveness.
Finally, Tier 1 suppliers are also revisiting and expanding their involvement in the semiconductor space. They are either building on existing core competencies or developing entirely new ones at the IC or module level as a way to address emerging challenges and opportunities in the automotive supply chain. As electric motorization continues to drive innovation and growth development in the semiconductor industry, the future belongs to those who keep pace.
