Analysts say the automotive industry, which faced a severe "new car delivery crisis" last year due to a shortage of automotive semiconductors, is now facing concerns about excess semiconductor inventory, with reduced demand for automotive semiconductors considered the root cause. Dutch semiconductor manufacturer NXP recently reported that its automotive chip sales in the third quarter of this year grew by less than 5% compared to the same period last year, the slowest growth rate in the past three years. Automotive chips account for more than half of the company's annual revenue, and NXP expects automotive semiconductor sales to grow by mid-single digits in the fourth quarter. The company stated that it is working to reduce inventory. Recently, Onsemi, a US company that produces power semiconductors, also predicted that its revenue and profit in the fourth quarter of this year are expected to decline compared to the same period last year. Power semiconductors are key components in electric vehicles used to control battery power loss.
Previously, the COVID-19 pandemic increased demand for automobiles, but manufacturers reduced their semiconductor supply, leading to a severe semiconductor shortage until last year. However, the shortage of automotive semiconductors has now largely eased. Looking at the waiting times for Hyundai and Kia models, popular models like the Avante, Grandeur, and Sorento, which had wait times of one to two years last year due to semiconductor shortages, now typically take less than three months – a significant reduction. This is primarily due to automakers actively increasing their semiconductor inventories. According to the Semiconductor Industry Association (SIA), semiconductor orders from the automotive industry actually increased by 16% last year, while orders from consumer electronics industries such as personal computers and home appliances decreased by 8%.
