Import substitution speeds up as Chinese MCU suppliers target automotive sector
Annie Huang, roundup; Jack Wu, DIGITIMES AsiaThursday 16 February 20230
Credit: DIGITIMES
The wave of import substitution in China's semiconductor sector, coupled with the strong demand from the EV market, has led many Chinese MCU (microcontroller unit) suppliers planning to enter the automotive MCU sector. For now, Chinese MCU suppliers mostly begin with products like chassis control, dashboard, and touch screen. Only a few suppliers have products for high-end applications like V2X and ADAS.
Before EVs became widespread, Chinese MCU suppliers primarily targeted consumer electronics with a lower entry barrier due to the massive domestic market. Automotive application is not considered due to its high R&D costs, high technical barriers, and the market dominated by major international brands. However, the promising future of the automotive market has caused many Chinese suppliers to make their way into the automotive MCU sector.
Chinese memory leader GigaDevice began planning for automotive MCUs back in 2020. In September 2022, it launched the GD32A503 series of automotive MCUs based on the Cortex-M33 inner core. Sampling and introduction began in 2022. It has established long-term strategic partnerships with several Tier 1 suppliers and car manufacturers and has already delivered to some Chinese car brands.
Fudan Micro's first automotive MCU officially launched in 2022. By the end of December 2022, its first automotive MCU has completed the AEC-Q100 certification and had been introduced by several clients. Chinese media reported that Fudan is already working on designing the next generation of automotive MCU.
ChipON began cultivating the automotive MCU sector back in 2012, gradually releasing several different specifications of MCU products. In August 2022, ChipON officially launched the KungFu core 32-bit MCU. Its main applications are headlight controls, seat controls, air-conditioning panel controls, and car window controls.
ChipON is already collaborating closely with mainstream Chinese car brands like BYD, XPeng, Li Auto, and FAW, as well as international brands like Hyundai, Ford, Volkswagen, and more.
Founded in 2004, BYD Semiconductor began planning for the MCU sector back in 2007. In 2018, it released its first-gen 8-bit automotive MCU. In 2019, it released the first-gen of 32-bit automotive MCU which was widely installed in all BYD vehicles.
Regarding its MCU strategy, BYD Semiconductor takes a "wide product line, high coverage" approach. Currently, it has products such as industrial general MCU, industrial three-in-one MCU, automotive touch screen MCU, battery management MCU, and more. The company has delivered more than 2 billion units in total.
It's worth noting that consumer MCUs are going through an inventory clearance period due to weak demand from the end-user market. In contrast, automotive MCUs are experiencing a supply shortage, prompting Chinese MCU suppliers to concentrate their efforts on the high-end automotive MCU market.