Automotive semiconductor inventory recently peaked at 93 days for the highest in three years

According to IHSiSuppli's semiconductor inventory report, inventory of automotive semiconductor suppliers has recently reached the highest level since 2008, but due to the continuing uncertainty in the global economic situation, automakers have reduced their demand and it is estimated that inventory has declined in the third quarter.

In the second quarter, the inventory days of automotive semiconductor suppliers rose to 92.7 days, which is the latest data that has been fully confirmed. The number of days in inventory in the second quarter increased by 8.3 days from the 84.4 days in the first quarter, reaching the highest level since the fourth quarter of 2008. In the fourth quarter of 2008, inventory days exceeded the 100-year record, reaching 104.2 days. It is expected that the number of inventory days in the third quarter will drop slightly to 90.4 days, which will still be the third highest level since 11 consecutive quarters.

The higher inventory in the second quarter means that there is a surplus in the quarter. However, this situation is in line with the annual growth forecast for the operating income of OEMs in the automotive terminal market. In particular, US vehicle sales in September rose 10% year-on-year.

At a time when negative economic news is currently circulating, these strong sales figures have reassured automotive semiconductor suppliers. The prolonged delay in the European financial crisis has affected companies in all areas, including the automotive sector. As the financial market continues to fluctuate, the visibility of the automotive supply chain at the end of the year has declined, and semiconductor manufacturers have been cautious recently.

However, IHS found that automotive semiconductor suppliers are generally more optimistic. For example, Freescale Semiconductor of the United States has confidence in the long-term growth of the automotive market and announced that it will establish a research and development center in Scotland to develop microcontrollers, networking and industrial applications for automobiles.

Infineon, the German semiconductor supplier, has the largest share of automotive semiconductors, and it also has hope for customer sales prospects in its automotive manufacturing sector. Infineon’s second-quarter automotive operating revenue increased by 5% from the previous quarter and was 23% year-on-year. Demand from European and Asian OEMs was very strong.

In the second quarter, European and American manufacturers’ automotive semiconductor stocks remained flat in the first quarter, but Japanese suppliers such as Renesas Electronics brought too much inventory into the third quarter. IHS believes this may be due to the fact that Japanese manufacturers have finally recovered their pre-earthquake output levels, and that semiconductor inventory is increased to meet the needs of Japanese customers to resume production.

Top automotive semiconductor suppliers also include STMicroelectronics, a French-Italian joint venture, and NXP Semiconductors, the Netherlands. For these suppliers, achieving growth in the coming quarters is almost no problem. In particular, he was encouraged by the fact that due to the increasing fuel efficiency standards, the implementation of safety measures such as electronic tire pressure monitoring systems in various countries, the multimedia of in-vehicle entertainment information systems, and the high-tech features associated with connected cars, semiconductor content in automobiles is presented. growth trend.

However, IHS believes that the supply surplus in the second quarter may continue to maintain this situation in the third quarter and it is difficult to assess its impact in the near future. This is because the situation of automotive semiconductor suppliers is very different, and companies do not necessarily engage in the same device. For example, Freescale and Renesas are major suppliers of automotive microcomponents, and Infineon holds a large share of discrete semiconductors. The product and end markets also vary by region, model and function. The functions are mainly divided into security, transmission systems, and infotainment.

At present, automotive semiconductor suppliers expect a longer-term increase in demand, digesting current and future excess inventory. It is expected that suppliers will also reduce the operating rate in the third quarter to lower inventory, helping to restore inventory to a more appropriate level.