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China auto vendors to step up integration of homegrown chips

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Sources said, in the second half of 2022, many China-based semiconductor makers contacted distributors to prepare for demand from China-based automakers and tier-1 suppliers. Chinese semiconductor factories are currently preparing to aggressively attack the auto industry and replace international IDMs in the market. According to the Commerce Development Research Institute (CDRI), the industry for China-made vehicle-grade microcontroller units (MCU) is entering a period of rapid growth, which includes key Chinese automotive MCU manufacturers GigaDevice, SinoWealth Electronic, Fudan Micro, Nations Technologies, and Chipsea Technologies.

Many distributors act as agents for overseas chipmakers and therefore have knowledge about domestic and foreign product market development, sources said. It also gives them an understanding of what tier-1 companies and automakers are looking for, which can help with operational efficiency.

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