Although the overall economy is unstable, the use of automotive MCUs is still increasing gradually due to electric and smart vehicle trends. In order to meet market demand, IDMs have strengthened their investment in production resources. There will also be volume and price growth in 2022. Overall market size is estimated to reach US$8.58 billion, with an annual growth rate of 25.7%.
Automotive MCU market dominated by major international IDMs, 32-bit penetration rate will reach 80.1% in 2022
NXP, Renesas, and Infineon account for approximately 70% of global automotive MCU market share. In 2022, NXP will focus on the development of its S32 series and presented a S32M test chip featuring TSMC’s 5nm process, symbolizing a major milestone in the development of automotive chips. Renesas is focusing on its RH850 series, supplemented by the Low Power RL78 to stabilize development. Infineon’s automotive MCU development is focused on its AURIX series which features a self-developed TriCore core and is designed to perform mid-to-high-level automotive system control.
In general, major international IDMs have a complete line of automotive MCUs. With the increasing number of automotive functions, requirements for MCU computing power have advanced. Considering the optimization of major manufacturers’ product portfolios, the penetration rate of 32-Bit MCUs will also increase year by year and is forecast to grow to 80.1% in 2022.
Nuvoton ranks among top ten MCUs producers worldwide, Taiwanese manufacturers’ operations suffer headwinds after tide of shortages recedes
Taiwanese MCU manufacturers are represented by Nuvoton, Holtek, and Sonix. There are other manufacturers such as Generalplus, Nyquest, Hycon, and Megawin but their revenue scale is small and proportion of MCU is low. Overall, only Nuvoton is an IDM with a MCU market share ranked among the top ten in the world and readily available automotive MCU products.
Taiwanese manufacturers mainly focus on mid-to-low-end consumer electronics applications with low barriers to entry. Most of them are fabless manufacturers, meaning the barriers to entry for capital are also low. Therefore, it is difficult to compare their product portfolios with major international manufacturers. After the shortage of semiconductors subsided, operation in 1H22 inevitably encountered headwinds and demand for consumer electronics in 2H22 will continue to be weak, signaling the arrival of a cold winter for the consumer MCU market.
A fire broke out at the 12-inch wafer production line of Renesas’s Naka Factory on March 19 due to an overcurrent in the plating equipment. Renesas said that the fire burned about 5% of the total area of the first floor. The Naka fab mainly manufactures MCUs and SoCs for automotive, industrial, and IoT-related applications. While Renesas officially aims to get the fab back to full operation within one month, TrendForce expects the immediate task of restoring the cleanroom and installing new equipment systems to take much longer than that. The repair of the production line will have to proceed meticulously so as to avoid the risks of manufacturing-related problems in the mass production of automotive chips later on. Three months is TrendForce’s conservative estimate for the fab to regain its former level of wafer-start capacity, meaning the tight supply of automotive MCUs will be further exacerbated going forward.
The Naka incident is not expected to result in additional orders for other foundries, given the current tight wafer-start capacity across the foundry industry
TrendForce indicates that the 12-inch Naka fab’s process technologies likely range from the 90nm node to the 40nm node. With regards to Renesas’s production lines for automotive chips, TrendForce expects the fire to impair the fab’s wafer-start capacities for products including automotive PMICs, certain V850 automotive MCUs, and first-generation R-Car SoCs. Other foundries, in particular TSMC, are able to support some of Renesas’s production, since 2/3 of their technologies are interoperable. However, it is exceedingly difficult for other foundries to allocate spare wafer-start capacities to make up for Renesas’s shortfall due to the existing wafer-start capacity crunch across the foundry industry.
Ranked third among automotive semiconductor suppliers in 2020, Renesas is also currently one of the top five largest automotive MCU suppliers at the moment. Other automotive MCU suppliers include STMicroelectronics, Infineon, NXP, TI, and Microchip. Although most of STMicroelectronics’ automotive MCUs are manufactured in-house, TrendForce believes that the Naka fire will not result in additional orders for Renesas’s competitors, including STMicroelectronics, since automotive semiconductors are currently in extreme shortage.
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at email@example.com