CHIP SITUATION FOR CAR COMPANIES in 2022

Qualcomm，NVIDIA，Mobileye，Intel，NXP，Infineon，ST，ON Semiconductor，Renesas，ADI，TI

In 2022, the car companies that should lack cores still lack cores: the financial reports of the top ten auto semiconductor giants tell you the truth

2021 is the best year in the history of automotive chips.

First, stimulated by electrification, intelligence and networking, the demand for chips has increased greatly. Secondly, because the production capacity failed to meet the demand, the tight supply and demand led to a sharp rise in chip prices. Third, automobile production has also basically recovered. The chip market will increase by about $46.8 billion in 2023. All chip companies have very good prospects for 2022, with strong market demand, still tight production capacity and continued price rise.

The tight supply of automotive chips from the end of 2020 is mainly caused by two factors:

First, the epidemic has caused the home economy and home office, which has led to the continuous downward trend of notebook computers and continued hot sales. This phenomenon caught many manufacturers unprepared and did not have enough production capacity to deal with laptop chips. The chain reaction was that the production capacity of vehicle chips was occupied.

On the other hand, the recovery of the auto market is relatively sudden, which makes the upstream chip manufacturers have no time to respond.

As the 8-inch wafer production capacity has been shrinking for 10 consecutive years, there is a sudden shortage of supply, resulting in an extremely tight production capacity of the 8-inch wafer product line, which corresponds to the tight supply of on-board MCU.

In addition, in the second half of 2021, many products that originally used 8-inch wafers turned to 12 inch wafers with abundant production capacity due to lack of production capacity. This conversion process is relatively slow and may last until the second half of 2023.

According to the financial reports of major automobile chip manufacturers in the fourth quarter of 2021, the demand for chips is very strong. After the inventory increased briefly in the second and third quarters, the inventory level began to decline rapidly in the fourth quarter, which may be due to the manufacturers' increasing purchasing efforts.

It can be predicted that in 2022, the supply of vehicle chips is still tight, and the price may continue to rise. However, the impact is still on enterprises with rigid procurement policies such as Volkswagen. Chinese local enterprises will not be affected at all, and emerging car manufacturing and luxury cars will not be affected at all.

It should be noted that the vehicle factory will not purchase directly from the chip factory, that is, the vehicle factory will never lack the core, and only the parts factory will lack the core.

The whole vehicle factory has only four processes: stamping (Tesla is casting), welding, spraying and final assembly. European and American manufacturers basically do not participate in parts manufacturing. Toyota, Hyundai and Honda vertical supply chains basically complete most of the key parts within the group.

For example, Toyota group has 16 first-class enterprises and one research institute, including:

(1) Aisin, which supplies at transmissions for Toyota, GAC and Chang'an, also supplied car machines for Audi in the early stage. Aisin also supplied electronic body stability system, brake by wire and other electronic and electrical parts related to braking for Toyota, and also made high-precision maps.

(2) Jeteg supplies Toyota with steering components and steering by wire electronic and electrical products.

(3) Aichi steel supplies Toyota with steel and aluminum magnesium alloy materials for the body, as well as die-casting or forged parts.

(4) Toyota car body supplies Toyota car body, Toyota synthetic supplies Toyota with safety belts, airbags and various plastic parts in the car, Toyota textile supplies Toyota with seats, and electric equipment supplies Toyota with most electronic and electrical components.

(5) Toyota Central Research Institute is not only a research institute, but also has a chip production line, which can produce some key chips, such as IGBT chips for Prius and SiC MOSFET on hydrogen powered vehicles.

Toyota also holds the shares of Renesas, Japan's first and the world's third-largest auto chip manufacturer, so Toyota will not lack core.

Further, Toyota belongs to Japan's Mitsui chaebol. Mitsui chaebol not only owns mines and ocean shipping fleets, but also a series of powerful enterprises, such as Asahi nitko, the world's largest glass enterprise. Basically, except for tires and a few digital chips, suppliers can not be found in the chaebol.

Electric vehicle manufacturers usually have self-made parts. For example, Weilai can make its own motor electric control, which requires the purchase of chips. Tesla also makes its own electric control and vehicle machine to assemble the motor.

Another is spot and futures.

Tier1 with large chip consumption signs long-term purchase contracts with the chip, and the purchase price is long-term co pricing. The price rarely fluctuates, which is much lower than the spot market price.

However, when there is a shortage, chip manufacturers naturally give priority to customers who are willing to pay a high price.

Manufacturers with small demand can not get direct supply from chip manufacturers. These manufacturers can only take goods from dealers or agents. This part is spot, and the price fluctuates with the market. Like on-board MCU, the price is fried several times or even dozens of times.

When chips are in short supply, some car companies will skip Tier1 and directly go to dealers or agents to purchase chips, and then give them to Tier1 to ensure the normal operation of their supply chain, such as ideal cars. But the vast majority of traditional car companies will not do so.

In fact, Volkswagen with the most serious lack of core can completely avoid the lack of core. Large upstream parts manufacturers can successfully deliver to Volkswagen on schedule. However, the price rise of chips purchased by parts manufacturers naturally needs to be shared by downstream manufacturers. However, traditional auto giants such as Volkswagen, GM and Ford will not accept this short-term price rise. They would rather stop production and wait for the price to return to normal.

This is because accepting price increases means declining profits and poor performance. Such car companies pay more attention to profits than sales. Xinxing automobile, on the contrary, values sales rather than profits.

For example, in the third quarter of 2021, when the core shortage was the most serious, Volkswagen's sales fell by 29.9% and its output fell by 35.1%, but Volkswagen's revenue fell only slightly by 4.1%, its operating profit fell by 12.1%, and its after tax profit increased by 5.6%.

Take Nissan for example. In the fourth quarter of 2021, sales fell by 16% and revenue fell by 17.8%, but operating profit nearly doubled.

01. Qualcomm with $27 billion in orders

Qualcomm's fiscal year is the end of September every year, so Qualcomm announced the first quarter financial report of fiscal year 2022 in January.

Qualcomm's fiscal year 2021 revenue was $33.6 billion, a year-on-year increase of 43%, and its net profit was $9 billion, a year-on-year increase of 74%. The revenue of QCT subsidiary doing hardware is US $27 billion, and the revenue of QTL receiving patents is US $6.3 billion.

Specific to products:

Mobile phone business revenue was US $16.8 billion, a year-on-year increase of 61%;

RF front-end revenue was USD 4.2 billion, with a year-on-year increase of 76%;

IOT business revenue was US $5.1 billion, a year-on-year increase of 67%. Qualcomm's notebook chip business for Microsoft is also part of IOT business.

The revenue of automobile business was US $1 billion, with a year-on-year increase of 51%. The automotive business is Qualcomm's slowest growing segment.

QCT revenue in Q1 was $6.28 billion, including:

Mobile phones amounted to US $4.07 billion, a year-on-year increase of 53%;

The RF front end was US $900 million, with a year-on-year increase of 39%;

The value of automobiles was 240 million US dollars, with a year-on-year increase of 40%;

IOT was US $1.07 billion, a year-on-year increase of 71%.

Q2 QCT revenue of $6.47 billion, including:

Mobile phones amounted to US $3.86 billion, a year-on-year increase of 57%;

The RF front end was USD 960 million, with a year-on-year increase of 114%;

The value of automobiles was US $250 million, with a year-on-year increase of 83%;

IOT was US $1.4 billion, an increase of 83% year-on-year.

In the first quarter of fiscal year 2022, that is, the fourth quarter of fiscal year 2021, Qualcomm's QCT revenue was $8.8 billion, including:

Mobile phones reached US $6 billion, a year-on-year increase of 42%;

RF front end was USD 1.1 billion, with a year-on-year increase of 7%;

IOT business revenue was US $1.5 billion, a year-on-year increase of 41%.

Qualcomm's performance in the Chinese market is excellent, but it is still suppressed by Intel a3900 Series in the global market. In the fourth quarter of 2021, its revenue fell slightly month on month and its year-on-year growth slowed down.

However, the Intel a3900 series is a "sunset". Without upgrading for many years, it may decline sharply in 2023. The outbreak of Qualcomm's automotive business still has to wait for 2023.

But at the same time, Qualcomm's cockpit business received orders of up to $13 billion.

The biggest move of Qualcomm's automotive business in 2021 is the acquisition of veoneer. At present, the acquisition has passed the antitrust review of the United States, Germany, France and Italy, and China has not passed the antitrust review. It is reported that the merger of the two will be officially completed as early as April 2022, when the annual revenue of Qualcomm's automotive business should reach more than $3 billion.

Veoneer's revenue in 2021 was $1.66 billion, including $690 million for active seat belts and $870 million for ADAS.

The gross profit margin was 16.5%, up from 13.3% in 2020. The R & D cost was US $420 million, accounting for 25.6%, and the operating loss was US $360 million, slightly narrowed from US $370 million in 2020.

Veoneer's orders in hand reached US $14 billion. By the end of June 2021, Weining had shipped 8.2 million vision systems, 42 million millimeter wave radars and 890 million active seat belt ECUs.

Split view:

(1) With monocular vision system and binocular vision system capabilities, Veninger is the world's leading manufacturer of stereo binocular system, with a market share of more than 50%, and its customers are mainly Mercedes Benz and Subaru. In addition, the high configuration models of Geely's kx11 and ex11 platforms will also adopt Veninger's stereo binocular system, and the low configuration models are Veninger's monocular system, Adas ECU is also supplied by Weining. BYD Han's monocular vision is also supplied by Weiner.

(2) In terms of millimeter wave radar, Weining's main customers are jeep, Ford, Geely, Volvo S90 / V90, Honda Civic, Mercedes Benz electric EQ series, BYD Han, and 77GHz and 24GHz radars.

(3) In terms of lidar, Weining is the OEM of velodyne, the European part of velodyne is supplied by Weining, and there are also American Ford customers.

(4) In terms of high-precision maps, customers mainly include general motors. The new generation of General Motors keleide is equipped with high-precision maps of Weining.

(5) The driver condition monitoring system is mainly jeep and Ford F150.

(6) In terms of domain controller and autopilot controller, Weining is the only strategic partner of Qualcomm. The domain controllers of Mercedes Benz e \ s \ C \ gla are provided by Weining.

(7) In addition to perception and decision-making, Weininger also owns actuators, that is, an electronic braking enterprise jointly invested with nisin, an affiliated company of Honda in Japan.

In October 2019, in order to improve cash flow, Weining sold 51% of its shares to Honda for $176 million, but the two still cooperated closely.

In August 2020, another 22 million shares were sold to ZF, but a small number of shares were still maintained. Veninger and Volvo established zenuity software company, which was dissolved in April 2020.

(8) There are also special positioning modules. The high-precision positioning module used by Cadillac super cruise is provided by Weining.

(9) C-v2x also has corresponding products, but the market has not been started at present, and a pilot with Volvo has been launched.

Basically, all of the ADAS applications you can think of have product counterparts. Besides the scattered monocular system market, the millimeter wave radar field is not as good as the mainland, Bosch and electrical equipment, other fields can enter the top three and rank first in many fields.

It can be said that Weining has the most complete product line, especially active seat belts, which are not available in other ADAS companies.

02. NVIDIA, which continues to decline

NVIDIA's fiscal year is strange, which ends at the end of January every year, so the annual financial report will not be released until the end of February.

NVIDIA's main customers are Mercedes Benz and Audi.

The Mercedes Benz cockpit has always used NVIDIA's SOC.

Audi's previous generation of car machines also used NVIDIA chips, but the newly launched models in the second half of 2019 used Qualcomm chips and changed to Samsung chips since 2021. Audi's instruments have always used NVIDIA chips and have not been replaced.

In 2019, NVIDIA's automobile business revenue was about $700 million. In 2020, it lost Audi, a major customer, to $536 million, a significant decline of 23.4%. It increased in 2021, but it continued to decline month on month.

As for the more advanced intelligent driving chip, the contribution is still very low, which is negligible.

03. Mobileye and Intel have reached the ceiling

Intel's automotive business is mainly divided into two parts: one is the acquired Mobileye, and the other is the cockpit SOC, that is, atom a3900 series products, which are subordinate to Intel IOT business unit.

Intel's 2020 revenue is $77 billion, and its automobile business is less than $1.5 billion, less than 5% of Intel's total revenue, which is insignificant in the Intel system.

Mobileye fell 13.3% month on month in the second quarter. Although the year-on-year growth rate is still very high, Mobileye seems to have reached the ceiling and can't go any further.

The third quarter was flat, with a year-on-year increase of 39%, and the fourth quarter was up, with a year-on-year increase of 7%, but it still did not exceed the ceiling in the first quarter.

In terms of operating profit, the operating profit of Mobileye in the second quarter was US $109 million, down 25.9% month on month, and continued to decline in the third quarter.

In the fourth quarter, it continued to decline month on month, with a year-on-year decline of 10%. Considering that the main product eyeq4 adopts 28 nm fd-soi process, Italy France semiconductor has sufficient capacity, which should not be affected by the shortage of OEM capacity.

Mobileye has a market share of about 75% in ADAS, but it is facing competition from NVIDIA, anba, Texas Instruments, Qualcomm and Xilinx FPGA. Mobileye is not flexible enough. Emerging car manufacturers who want to make features will not choose Mobileye.

Mobileye launched a series of new products during CES, including the new flagship ultra eyeq, eyeq6h and eyeq6l chips, as well as a series of millimeter wave radar chips.

Mobileye is the highest starting point from the beginning. The receiving, transmitting and processing chips are developed by itself, and even the oscillator is made by itself. Other millimeter wave radar manufacturers, including Bosch, Continental automobile, electric equipment, anbofu and other top manufacturers, without exception, purchase NXP or Infineon chips. Mobileye surpassed any millimeter wave radar enterprise from the beginning. In addition, Mobileye is also developing flash lidar.

Intel's IOT division, where the a3900 series is located, performed well, with revenue increasing by 32.9% year-on-year to $4 billion in 2021.

Operating profit soared by 110%. Recently, the shipment of a3900 series cabin SOC is booming, and the big customer BMW is unique. Almost all BMW series use a3900 series chips. In 2021, BMW's shipment reached 1.93 million, an increase of 18%, which is the best selling brand in BBA luxury cars.

The sales volume of electric vehicles increased by about 100%, and the sales volume of plug-in electricity increased by about 70%. New customers of a3900 series include GM, Volvo, Hyundai, FCA, etc.

04. NXP is record good and getting better and better

In 2021, NXP's overall revenue was US $11.1 billion, with a year-on-year increase of 29.1%. Instead of the decline for two consecutive years, NXP increased significantly, with an increase of 18.1% over the best year in history in 2018. The revenue of automobile business reached US $5.5 billion, with a year-on-year increase of 44.7%.

NXP's gross profit margin and operating profit margin increased significantly in 2021, and its free cash flow decreased compared with 2018.

NXP predicts that there will still be a good year-on-year growth in the first quarter of 2022, with a midpoint of 21%, a high of 24% and a low of 18%, which also reflects the strong market demand and the slight tension of automobile chips.

NXP's DIO reached 120 days in the second quarter of 2020 and decreased sharply to 78 days in the fourth quarter of 2020. Inventory decreased rapidly. Inventory continued to rise in the second quarter of 2021, reaching the highest 88 days. After that, it began to decline to 83 days in the fourth quarter of 2021.

The normal inventory level of NXP is 100-110 days. It is expected that it will take 3-4 quarters to return to the normal level, and the chip supply is still very tight.

DPO is the accounting period of payment to suppliers. It increased rapidly in the fourth quarter of 2020 and has basically returned to normal.

NXP's suppliers are mainly package testing factories and wafer foundry, which shows that the capacity of wafer foundry and package testing is sufficient. Otherwise, it will not increase from 55 days in the third quarter to 75 days, from 79 days in the first quarter, from 92 days in the second quarter to 83 days in the third quarter, and rise again in the fourth quarter to 87 days. The foundry's willingness to accept a longer payment period means that the capacity is becoming more and more relaxed, The capacity of the foundry is gradually abundant.

Cash conversion cycle refers to the cash cycle, or CCC for short. It refers to the number of days from the time when a company pays cash to purchase inventory to the time when it finally recovers the cash from selling products. The cash cycle can be used to measure the company's liquidity.

From the fourth quarter of 2020, CCC fell rapidly to 31 days, and there was little change in the second quarter, which was 31 days. In the fourth quarter of 2021, it plummeted to 24 days. It is speculated that there are more cash for urgent orders and NXP has excellent liquidity.

In terms of products, NXP took a solid step and began to introduce TSMC's 16 nm FinFET process. Before, NXP's most advanced 28 nm fd-soi process.

The first to use the 16 nm process are s32g2 and s32r294.

S32r294 is a chip for 4D millimeter wave radar, with an on-chip SRAM of 6.5mb and a new mipi-csi2 interface.

S32r294 is followed by s32r45during the CES exhibition in 2022, there is the flagship 4D millimeter wave radar chip s32r41, which can process up to 192 virtual channels. For the first time, arm cortex-a53 core and cortex-m7 core are introduced.

In terms of cooperation, NXP has further deepened its cooperation with Ford. In addition to the special models Mondeo and EVOS in the Chinese market, most Ford models, including F-150, electric Mustang and electric bronco, still insist on using i.mx8 as the main chip of the cockpit, and the gateway chip is fully imported into s32g to deal with the firmware Ota.

NXP has also established a strategic cooperation relationship with Foxconn. Foxconn will use NXP chips to fully enter the field of vehicles and gateways, and strive to become a large Tier1.

05. Infineon is about to enter the outbreak period

Infineon's overall revenue in 2021 was 11 billion euros, an increase of 29%, and its operating profit margin increased from 13.7% to 18.7%, a new high after 2008.

Infineon automobile business revenue was 4.8 billion euros, an increase of 37.5%. On the one hand, there is strong market demand. On the other hand, since Infineon's acquisition of cypress is included in the financial statements in mid April 2020, the growth rate in 2021 is relatively high.

In fact, if it were not for the impact of the Malaysian epidemic, Infineon's performance could be higher. Infineon's outlook for the first quarter of 2022 is relatively optimistic.

About half of Infineon automotive products are power semiconductors, mainly separation components, IGBT and MOSFET. MCU accounts for about 1 / 4, sensors account for about 18%, and storage accounts for about 7%.

In addition, Infineon is the world's largest automotive IGBT supplier, with a market share of more than 50%. Chinese electric vehicle manufacturers, including BYD, are Infineon customers. If Infineon wafer cutting and re packaging are included, the Chinese market share will exceed 60%.

In terms of SiC, Infineon won four customers, namely Xiaopeng, Hyundai, a Japanese family (possibly Nissan) and an American family (possibly GM).

Infineon predicts that the SiC market scale will be US $1 billion in 2025, and Infineon's market share will reach 30%. In order to meet the market demand, Infineon will convert a 6-inch plant and an 8-inch plant in Villach, Austria into SiC and Gan plants. If it still can not meet the market, it will expand its production capacity in Kulim plant in Malaysia.

Among the four financial liquidity indicators of Infineon as a whole, the inventory continues to increase, but this is not a separate inventory performance of automotive products, so it is difficult to say the relationship between market supply and demand.

In terms of DPO, Infineon increased from 54 days to 69 days, especially in the fourth quarter. It should be that the capacity of the wafer foundry is becoming more and more sufficient and is willing to accept a longer payment cycle.

In terms of DSO, Infineon fell to 31 days in the fourth quarter, showing strong market demand, more cash settlement and good liquidity.

The top ten customers in Infineon automotive field are Bosch, Continental automotive, Hitachi, electric equipment, anbofu, Jingbin, Valeo, Wandu, Haila and BYD. Infineon almost monopolizes the domestic electric vehicle chassis MCU. It is also the largest supplier of IGBT and the main beneficiary of the tide of electric vehicles.

06. STMicroelectronics: orders have been squeezed for 1.5 years

Stmicoelectronic referred to as St, i.e. Italy France semiconductor. In 2021, St revenue was US $12.76 billion, an increase of 24.9%, and the operating profit margin increased from 14% to 19%.

ST is divided into three business divisions: ADG, AMS and MDG. The automobile business is subordinate to ADG business division, accounting for 34% of its total revenue.

The top ten customers of St are apple, Bosch, Continental automotive, HP, Huawei, Mobileye, Nintendo, Samsung, Seagate and Tesla.

Italian French semiconductor MCU is the most ferocious chip fired, and it is also the key target of the country. At the earnings conference call on January 27, 2022, Jean Marc Chery, CEO of Italy France semiconductor, said that the visibility of backlog orders is about 18 months, which is much higher than the current and planned capacity of Italy France in 2022.

In the fourth quarter of 2021, the revenue increased by 20% month on month and the profit doubled sharply. However, Italy France semiconductor did not give the reason. Italy France semiconductor is the exclusive supplier of Tesla SiC MOSFET.

In the first quarter, SiC MOSFET added new customers to Hyundai Automobile, but it has not been sold yet.

A major harvest in the second quarter was to establish a strategic alliance with Renault to supply Renault with advanced power semiconductor chips. The sharp increase in profits may be caused by the price rise of Italian French semiconductor SiC MOSFET.

The market share of Italian French semiconductor on-board SiC MOSFET exceeds 60%, and there are more and more customer bases, which has the confidence to raise the price to Tesla.

07. Ansenmei in full bloom

Ansenmey was founded in 1999, formerly known as Motorola semiconductor division. In 2021, ansenmey's revenue was $6.74 billion, an increase of 28.3% over 2020.

Anson cents has three business divisions, namely intelligent sensing group, advanced solutions group and power solutions group. In 2021, the revenue of automobile business was USD 2.29 billion, an increase of 35.8% over 2020.

Ansenmey is the largest manufacturer of automotive image sensors, the second largest MOSFET manufacturer and the fourth largest IGBT manufacturer.

Ansenmey automotive products are distributed in four fields, namely ADAS, functional electronics, body electronics and LED lighting, powertrain and safety.

In the field of ADAS, the main product is the image sensor business acquired from aptina, with a market share of about 40%, ranking first with ov, with a revenue of about US $900 million in 2021.

Another product is SPAD and SIPM for lidar, which originated from the acquisition of Irish enterprise sensl. Other products include power separation components, ESD and EEPROM, and operational amplifiers.

In the field of functional electronics, the main products are IGBT, gate driver, rectifier, MOSFET, SiC, power module and current detection amplifier.

Ansenmey acquired GT advanced technologies ("gtat") for us $415 million in November 2021.

Founded in 1994, gtat is the "former overlord" in the field of sapphire materials. Sapphire materials are the main materials of LED epitaxy. Gan and SiC epitaxial layers are grown on sapphire substrates.

The main products in the field of body electronics and LED lighting are DC / DC conversion, DC / DC LED drive, LDO and MOSFET.

The field of powertrain mainly includes LDO, rectifier, MOSFET, EEPROM and gate driver.

Ansenmey will implement the manufacturing streamlining strategy in the future, eliminate the 4 -, 6 - and 8-inch production lines (these second-hand production lines are very popular in China, and the price is even more expensive than the new production lines), and increase the production capacity of the 12 inch production line. The outsourcing of packaging business has increased from 34% in 2021 to 45%.

Reza and Reza are about to break out

The revenue of Renesas in 2021 was 994.4 billion yen, about 9.12 billion US dollars, an increase of 38.9%, and the operating profit increased by 159%.

Renesas's auto business revenue in 2020 was 341 billion yen, equivalent to US $3.19 billion, and that in 2021 was 462.2 billion yen, equivalent to US $4.24 billion, an increase of 32.9%.

Renesas has a good outlook for 2022. It is expected that the revenue in the first quarter of 2022 will increase by 65% year-on-year, and the demand for automotive chips is strong.

In addition to automobiles, Renesas also has industrial and IOT business groups. Renesas's main development direction is hybrid and analog signal products. On February 8, 2021, Renesas acquired dialog, a British IC design company, for 4.9 billion euros, equivalent to 5.9 billion US dollars.

Dialog's main products are power management IC (customized for apple, accounting for 69%), AC / DC power conversion, low-power Bluetooth and digital audio codec.

Apple is its largest customer, accounting for 66% of its revenue. Dialog has a revenue of $1.42 billion in 2019. It is Italian French semiconductor that competes with Renesas. Finally, Renesas has made a higher bid. Before that, Renesas has acquired two mixed signal IC companies, IDT and INTERSIL, with a cost of $6.7 billion and $3.2 billion respectively.

About 30% of Renesas is manufactured by wafer foundry, 70% is completed internally, and the outsourcing plan will be further increased to 40% in the future. The main partners are TSMC, liandian and world advanced.

Renesas increased by 64.1% year-on-year and 21.7% month on month in the fourth quarter of 2021, which is the highest increase among all automotive semiconductor enterprises. It is speculated that it may be caused by the price rise.

Renesas and NXP are the largest automobile MCU manufacturers in the world, and 80% of the car cockpit adopts Renesas MCU. In addition, in the fields of traction motor drive, battery management and inverter, Renesas's MCU market share also exceeds 60%.

Renesas also has profound technical accumulation in the field of power semiconductors such as IGBT. The sharp increase in the sales of electric vehicles is also one of the reasons for the substantial increase in Renesas orders.

In order to pursue the advanced nature of products, Renesas first used the technology of 28 nanometer in the automobile MCU, and embedded Flash flash memory. Renesas had huge capacity, but it couldn't produce such advanced chips. Because the logic circuit and Flash flash circuit were different, the only way to do well was TSMC, and the 28 nanometer MCU of renesa almost commissioned the production of 12 inch line of TSMC. However, Renesas should also be able to produce some MCU.

TSMC raised the OEM price by 20% in the second half of 2021, so Renesas may also directly raise the price by 20%.

09. Rookie ADI is explosive

Analog device (ADI) was established in 1965.

ADI's entry into the top ten vehicle semiconductor manufacturers mainly depends on the acquisition of Meixin. In 2020, ADI acquired Meixin semiconductor with us $20.9 billion. The acquisition was completed in September 2021, and its performance will be more beautiful in 2022.

ADI ends its fiscal year at the end of October every year. ADI's financial report for the first quarter of fiscal year 2022, that is, the fourth quarter of 2021, will not be released until February 16.

ADI's revenue in fiscal year 2021 was $7.3 billion, an increase of 31%. ADI's auto business revenue in fiscal year 2021 was US $1.25 billion, a year-on-year increase of 60%, which is still when only one month's revenue of Meixin is included. If the consolidated financial statements are included, ADI's auto business revenue in natural year 2021 is estimated to be about US $1.7 billion.

ADI's automobile business mainly has two parts. One part is audio DSP and audio A2B bus products; The other part is linear's power IC acquired in 2017.

ADI's audio DSP monopolizes the car machine. There are many sound effects in luxury cars, and the DSP used will be doubled. Tesla's new model s uses two ADI DSPs.

Meixin's revenue in 2021 is estimated to be about $3 billion, of which the automobile business accounts for 18% of its revenue.

The auto business of Meixin mainly consists of two parts:

One part is power IC, mainly SoC Power Supply IC and BMS IC.

The other part is de serialization, i.e. gmsl. Meixin basically monopolizes gmsl in the field of cameras. Almost every camera needs 1-2 Meixin gmsls, one plus serial and one de serial. In case of 360 panorama, four cameras share one de serial.

10. Robust Texas Instruments

Ti's revenue in 2021 was $18.34 billion, an increase of 26.9%. Texas Instruments is divided into three business divisions: analog, embedded and others.

In 2021, the revenue of the simulation division was USD 14.05 billion, with a year-on-year increase of 29%; The revenue of embedded business unit was US $3.05 billion, with a year-on-year increase of 19%. The core product of other business units is DMD chip, with a revenue of US $1.25 billion in 2021, a year-on-year increase of 24%.

At present, the only distributor of Texas Instruments is Airui. Texas Instruments is the only large semiconductor manufacturer to carry out large-scale online sales. The online sales scale increased 10 times in 2021, nearly US $1.8 billion, which also increased its profits and revenue. The revenue of automobile business was US $3.85 billion, with a year-on-year increase of 33.2%.

Texas Instruments is the world's largest manufacturer of automotive power IC, with a price increase of about 20-40% in 2021.

The automotive business is the fastest growing area of Texas Instruments, increasing from 12% in 2013 to 21% in 2021, and revenue increased from $1.54 billion to $3.85 billion. Texas Instruments is the main beneficiary of electric and intelligent vehicles.

11. TSMC's automobile business is at a high level, but it is still insignificant

Foundry's chip business is US $1.4 billion, accounting for about 2.5% of the global chip market in 2020.

For TSMC as a whole, the automotive chip business is insignificant.

This is because digital automotive chips are mainly 12-28nm process, hybrid automotive chips are generally 16-45nm, analog chips are generally 28-90nm, and TSMC's main products are 7Nm and 5nm. TSMC is a complete monopoly market in the 5nm field, and its profit is much higher than that of automotive chips.

TSMC's main customers are Renesas, NXP and STMicroelectronics, and its main products are the most scarce MCU. In the field of MCU OEM, TSMC has a market share of about 70%.

TSMC has raised the price of automotive chip customers by 20% or more, and the utilization rate of 8-inch capacity is estimated to have exceeded 100%. TSMC has fully opened its capacity. In the future, the supply of MCU may still be tight and the price will rise.

In order to expand its cost competitive advantage and meet the market demand, ti will start a series of capacity expansion in 2022. A new 12 inch plant of Ti will be put into operation in the second half of 2022, and a new plant in Utah will also be put into operation in 2023. In the future, depending on the market demand, there will be three 12 inch wafer plants on the road, of which two will be put into operation in 2025.

Ti's main products are analog chips, which do not need too advanced manufacturing technology, up to 45 nm.