The "lack of core" in automobiles is gradually alleviating, and the supply of chips in the future is still tight

On the morning of January 20, the Information Office of the State Council held a press conference to introduce the development of industry and informatization in 2021. Upstream News (e-mail: [email protected]) reporter learned from the press conference that the problem of "lack of core" chips in the automotive field is gradually alleviating. However, the stability of the global integrated circuit supply chain is still facing severe challenges, and the supply of chips will remain in a state of tension for a long period of time in the future.

▲ Luo Junjie, spokesman of the Ministry of Industry and Information Technology and director of the Operation Monitoring and Coordination Bureau. Image source/country

Luo Junjie, spokesman of the Ministry of Industry and Information Technology and director of the Operation Monitoring and Coordination Bureau, introduced that last year, the global integrated circuit manufacturing capacity continued to be tight, and all walks of life were facing the problem of "lack of cores", which had a greater impact on the performance of global industrial development. Among them, the automobile industry in particular has been hit the hardest, and many domestic car companies have therefore reduced production or short-term production stoppages. There are two main reasons for this. On the one hand, with the continuous improvement of the degree of social intelligence, the demand for chips as the most critical component of smart devices continues to grow. On the other hand, the spread of the global epidemic and the unreasonable sanctions and suppression of foreign companies by some individual countries have caused a serious impact on the global semiconductor supply chain. The combination of multiple factors has also objectively caused the emergence of the problem of "lack of core". With the gradual play of the market regulation mechanism, as well as the joint efforts of governments at all levels, automobile companies, and chip companies, the problem of chip "lack of core" in the automotive field is gradually alleviating. However, we must also see that the stability of the global integrated circuit supply chain is still facing severe challenges, and the supply of such chips will remain in a state of tension for a long time to come.

Integrated circuits is a highly globalized industry, China is the world's largest integrated circuit market, the Chinese government has been adhering to the principle of openness and development, is committed to building a global close cooperation, sustained and stable industrial chain supply chain. Therefore, in response to the problem of "lack of core" in automobiles, the Ministry of Industry and Information Technology has also been paying close attention to and actively responding, and we have taken multiple measures to ensure the supply of chips and maintain the stable operation of the automobile industry. In the next step, we will also strengthen communication and cooperation with relevant countries and regions, encourage backbone enterprises at home and abroad to increase investment efforts, and promote the improvement of the supply capacity of the entire industrial chain of chips. On the other hand, we must also do a good job in the "Several Policies to Promote the High-quality Development of the Integrated Circuit Industry and the Software Industry in the New Era", which is the No. 8 document of 2020 issued by the State Council, as well as the implementation of relevant supporting policies, to promote the free flow of factor resources, create a fair and just market environment, promote the high-quality development of the integrated circuit industry, and help build an industrial system of global win-win cooperation and symbiotic development.

Upstream journalist Li Hongpeng