U.S. media outlet Automotive News reported today that forecaster AutoForecast Solutions (AFS) has reported that global vehicle production is expected to shrink by about 370,500 units this year due to a chip shortage, a 61 percent jump from the 230,700 unit reduction a week ago.
The chip shortage has led to the cancellation of an additional 91,600 units of production at European vehicle assembly plants. AFS currently estimates that the chip shortage will result in a shortfall of more than 1 million units in global vehicle production in 2022.
STMicroelectronics N.V. CEO Jean-Marc Chery announced on Jan. 27 that ST’s capital expenditures for 2022 are estimated to be between $3.4 billion and $3.6 billion to further expand its chip production capacity. Last year’s revenue increased 24.9% to US$12.76 billion, and this year’s revenue is estimated to be between US$14.8 billion and US$15.3 billion, equivalent to an annual increase of 16% to 20%.
In Q4 2021, ST’s Automotive Products and Discrete Components Group (ADG) revenue increased 28.6% QoQ or 22.0% QoQ to US$1.226 billion, while revenue increased 130% QoQ or 100% QoQ to US$216 million, with a 17.6% yield jump from 9.9% a year ago.
ST Microcontroller and Digital IC Group (MDG) reported revenue growth of 23.7% QoQ and 15.4% QoQ to US$1.062 billion in the fourth quarter, and revenue growth of 82.8% QoQ and 44.5% QoQ to US$318 million.
STMicroelectronics: Automotive chip capacity sold out this year
Chery said on Jan. 27 in an earnings call that the current backlog of orders has a visibility of about 18 months, much higher than ST’s current and planned 2022 production capacity. Europe eeNews reported on January 27, Chery said on the same day, electrification transformation is accelerating at an unexpected speed, this year’s automotive chip capacity sales an empty.
Tesla Inc. CEO Elon Musk said in an earnings call on Jan. 26 that the wafer shortage will be better than last year, but will still limit all factory output.
Musk said the shortage of chips is expected to be alleviated by the end of this year and early next year. STMicroelectronics is one of Tesla’s chip suppliers.