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2022 may be bumpy for semiconductor market

The semiconductor market should remain robust in 2022, but chipmakers still face some factors, such as trade tensions, that could disrupt the market. But the automotive chip market may see shortages last till 2025 due to insufficient 8-inch fab support. Carmakers are relying more on sensors for ADAS, but there are limitations to sensors' capabilities.

Chipmakers to face increasingly volatile market scenarios in 2022: Foundries and IC designers are set to face increasingly volatile market conditions in 2022, as strong demand seen in 2020-2021 is expected to start softening at a slow pace, US-China trade tensions remain unresolved and geopolitical risks continue to intensify.

8-inch fab capacity for car chips to stay short of demand till 2025: Shortage of automotive chips will persist throughout 2022, particularly those fabricated at 8-inch wafer fabs, and may not ease until 2025 given that the majority of 8-inch fab capacities have been fully booked in the years ahead and it is increasingly difficult to expand capacity, according to industry sources.

Vision sensor capabilities may still be limited for ADAS: In May 2021, Tesla announced some of its car models in North America would no longer use radar and LiDAR, using instead AI vision as the sensors for its advanced driver assistance system (ADAS).

By DIGITIMES

Link:https://www.digitimes.com/news/a20211227VL203.html?mod=3&q=IC

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