Study on the Supply Issue of Vehicle Microcontroller Chips in Post-pandemic Era in China

Abstract

As the pandemic subsides, there's a noticeable revival in the automotive consumer market. China's automobile industry, now at a pivotal moment, is making strides on the global stage, spurred by its transition towards new energy. While the world's car market has been historically dominated by German and Japanese brands, Chinese automakers were often labeled as mere imitators producing inferior quality vehicles. But this narrative is changing. Now equipped with advanced battery technologies and innovative designs, Chinese carmakers are poised to redefine the global automotive landscape. Their progress challenges the deep-seated dominance of traditional automotive powerhouses. However, this ascent is not without hurdles. External pressures, such as ongoing trade tensions, weigh on the industry. Moreover, there's an internal challenge to grapple with: the critical semiconductor sector, particularly the micro-control chips essential for modern vehicles, has yet to achieve self-sufficiency. Production constraints persist, and the desired levels of self-reliance remain elusive. This paper delves deep into the automotive microcontrol chip industry, with an emphasis on the upstream and midstream sectors of the supply chain. By shedding light on the current situation and drawing from global best practices, we aim to propose actionable recommendations. These suggestions will be aimed at enhancing production capacities, improving quality, and ultimately driving China's automobile industry towards a more self-reliant and globally competitive future.