MCU and MOSFET are out of stock, impacting downstream manufacturers' shipments.

the global spread of the new crown pneumonia epidemic due to the Delta variant virus, accelerating the global digital transformation, it also caused the structural imbalance of chip supply and demand in the electronic production chain to continue to deteriorate. Among them, power management IC, metal oxide half field effect transistor (MOSFET), rectifier and diode and other power semiconductor components, as well as microcontroller (MCU) are out of stock most seriously, and affect the second half of the system factory or ODM/OEM factory shipments.

based on the current operation of the electronic production chain,MOSFET and diode has reached 4~5 months, and it is normal for MCU to deliver more than 6 months.means that new orders in the third quarter will not be delivered until next year, and the shortage of demand has also driven prices up quarter by quarter.

is the shortage of wafer foundry and sealing foundry capacity., due to the over-investment in semiconductor factories over the past five years, the compound annual growth rate of 8-inch wafer foundry and line packaging capacity is lower than that of advanced process research and development and capacity construction.3%.

The second key reason is the doubling of demand., including 5G mobile phones or terminal devices, high-performance computing (HPC), electric vehicles, advanced driver assistance systems (ADAS), etc. for the power components and MCU capacity of the step-by-step jump increase. With limited supply growth but strong demand, chips continue to be out of stock due to structural imbalances between supply and demand, and the problem of long and short materials has surfaced.

is that in the first half of the year, the downstream operators of the electronic production chain overplaced orders to grab the supply of goods when chips were out of stock.,chip inventory distribution is extremely unbalanced., the inventory in the hands of IC design plants is approaching zero, and there is an illusion of high inventory in the full hand orders of wafer foundries and sealing and testing plants. However, downstream operators are facing the problem of long and short materials in the second half of the year due to the loss of focus on purchasing strategies.

Fourth, affected by the new coronary pneumonia epidemic, the leading global power semiconductor and MCU of the international IDM plant such as Infineon, Italy, Texas Instruments, Ansenmei, etc., located in Southeast Asia's own sealing plant is facing a serious epidemic under the requirements of the city,The local epidemic caused IDM plant's own closed testing plant to operate and reduce load., this situation is not expected to be effectively alleviated by the end of the year.

Fifth,epidemic has caused the equipment delivery period to continue to lengthen., due to the tight chip supply and assembly capacity load reduction and other problems continue, fab and sealing plant equipment delivery time has been extended.6 to 9 months, the delivery time of key equipment is as long1 year, the semiconductor factory's production expansion progress is slow, unable to cope with the demand for emerging orders.

demand for automotive chips continues to expand, although semiconductor manufacturing has expanded capacity supply, but recently suffered from the impact of the outbreak in Malaysia, IDM large local plants to reduce capacity across the board. The supply chain states that,IDM plants have only 60% of their local production capacity, and the delivery period has been extended directly to 2022. IDM plants have transferred most of their production capacity to vehicles and high-end markets, making the supply of consumer MCU more tight.

In fact, the latest report of IC Insights, a research and research organization, points out that the market size of automotive MCU is expected to reach in 2021.$7.6 billionsize, compared to 2020 growth.23%, the outlook will grow in 2022 and 2023 respectively.14%and16%.

, driven by the continuous growth of demand for self-driving and electric vehicles, IDM manufacturers, regardless of their own production capacity and outsourcing, have begun to focus on automotive and high-end demand, so as to promote the continuous growth of the automotive MCU market.

However, at the same time, under the effect of the continuous growth of the demand for automotive MCU, the demand for consumer MCU has not shrunk as a result, but has continued to grow. The supply chain said that the current consumer MCU market demand is still quite strong, and with the transfer of IDM large factory capacity to automotive, high-end, so that consumer MCU supply will be all the way to 2022.

As a result, legal persons are optimistic that diode and MOSFET factories such as Taiwan, Qiangmao, Dewei, Jili, Dazhong, Nixon, Fuding and other diodes and MOSFET factories will continue to record high revenue and profits in the second half of the year. MCU factories such as Xintang, Shengqun, Lingtong, Jiuqi and Weiquan will receive orders and prices will increase quarter by quarter. MCU stocks will be out of stock until at least the end of the year, and the visibility of orders will be seen next year.