Siwei Tuxin: Vehicle-side chips still show significant oversupply

Siwei Tuxin said in a recent survey that while the chip shortage is being eased, the relief is clearly structural. The car-side chips benefit from the rapid rise in the penetration of new energy and the strong demand for full intelligence, and still show a significant shortage of supply and demand, and we think it will continue in the longer term.

As for the chip capacity dilemma, Siwei Tuxin pointed out that it is generally seeking both incremental and variable demand. Seeking incremental, with TSMC and UMC and so on actively strive for production capacity; seeking variable, with domestic supply chain diversified cooperation, the end of this year or early next year to strive to achieve mass production.

As for the product planning of the cockpit SOC chip, Siwei Tuxin said that JIEFA's SoC chips will be developed, planned and arranged in two directions: low-end (covering multiple fields) and mid- to high-end (mainly high computing power).

It is worth noting that in the first half of the year, against the backdrop of the epidemic, SiweiTuXin still achieved good revenue growth, mainly from the contribution of ZhiYun and ZhiXin. On the chip side, automotive intelligence and electrification drove up the volume and price of automotive-grade MCUs. MCU products just won the "China Automotive Supply Chain Outstanding Innovation Achievement Award" from the China Association of Automobile Manufacturers, achieving high year-on-year revenue growth in the first half. On the autonomous driving side, with demand picking up and policy boosting, the penetration rate of new energy vehicles in China is generally showing a rapid increase, along with this trend, the demand for intelligence, especially for the mass production of autonomous driving-related functions, is exploding.

The Autonomous Driving Division, established in early 2021, is actively building integrated hard and soft solutions for all scenarios of autonomous driving, providing a Tier-1 product matrix and service capabilities to car manufacturers. In the first half of this year, in the face of the rapidly growing demand for L2 mass production, we have been actively expanding our cooperation with domestic top-tier autonomous brand car manufacturers, and the order amount has continued to exceed expectations.