Automotive MCU Research: Chinese vendors pursue replacement of foreign peers in the context of “shortage of chips”.
Concentrated capacity and repeated outbreaks of the COVID-19 make it hard to relieve the shortage of MCUs at once.
MCU, a core chip for vehicle control, finds application in body control, driving control, infotainment and driving assistance. MCU is a mature market featuring a stable pattern. NXP, Infineon, Renesas, STMicroelectronics and Texas Instruments have long been the top five players in the global automotive MCU market where CR7 (hold by international giants) reached over 95% in 2020.
Automotive MCUs with multiple specifications are often produced with 40/45/65nm process, and the operating cost of production lines remains high. So most integrated device manufacturers (IDM) like NXP, Renesas, Infineon, Texas Instruments and Microchip Technology adopt the foundry strategy. Automotive MCU foundry is a highly concentrated industry. Globally, 70% of automotive MCUs are produced by TSMC. Yet MCU capacity makes up a mere 3% of TSMC’s total capacity.
As the pandemic in 2020 led to a slump in the demand from automotive industry, MCU vendors reduced their orders and digested their inventory. In 2021, the recovery of global automotive industry has caused a short-term short supply of automotive chips that need a long time to supply.
Since 2021Q2, Malaysia and Taiwan have underwent a much severer COVID-19 outbreak. Taiwan-based TSMC is a major MCU fab; Malaysia is home to OSAT companies of vendors such as NXP, Renesas and Infineon. As a result, automotive MCU industry may be hit hard again, taking a bigger toll on chip supply.
At present, most vehicle and component production suspensions are a result of the shortage of MCUs which are largely demanded by automakers. It is predicted that the lack of chips will last across 2021 but may be eased from 2022 for the following reasons.
(1) Suppliers and fabs race to expand their capacity. For example, Infineon will construct and put into use a new 12-inch fab in late 2021; in 2021, TSMC will produce MCUs 60% more than in 2020, and concentrate on the expansion of its Nanjing plant (28nm) for larger MCU capacity.
(2) Chinese companies are working to make deployments in MCU. They are expected to start mass production in 2022 to replace foreign products and mitigate the short supply of chips. An example is GigaDevice which plans to spawn its latest automotive MCU products in 2021.
In the long run, as vehicles tend to be intelligent, connected and electrified, the shortage of chips will become normal. The basic solution to the supply safety in China’s intelligent connected vehicle industry chain is to build an independent chip industry chain.
The short supply of chips will bring the window of opportunity to Chinese MCU industry
Through the lens of supply chain, MCU ecosystem covers a lot including a variety of software, hardware, development tools, and open source platforms used by end customers. China currently still depends heavily on foreign software and tools.
International manufacturers are in dire need of MCUs amid the short supply of chips. Automakers have begun to add purchase channels and candidate suppliers, which brings the window of opportunity to Chinese MCU vendors.
In China, few companies such as AutoChips, ChipON, Sine Microelectronics, Chipways, BYD and NationalChip can produce MCUs in quantities, among which BYD, Sine Microelectronics, ChipON and AutoChips can support OEMs, but their products are still used for controlling simple functions like windows, lighting and cooling system and rarely seen in power control, intelligent cockpit and ADAS, among other complex applications.
MCU is a platform-based product. With abundant product lines, overseas vendors provide full range of products for customers. At present, Chinese vendors are working to deploying MCU product lines of all series.
Chinese MCU vendors may make breakthroughs in the following two aspects:
Body control: MCU solutions for vehicle wireless charging, ambient light control and flowing water blinker rear light control, which were once available to high-class models, have now been largely used in low- and mid-class vehicles, and the demand will surge.
For example, Sine Microelectronics has rolled out MCUs for vehicle wireless charging and flowing water blinker rear light control, of which ASM87F0812T16CIT, a MCU master chip designed for vehicle LED flowing water blinker rear light has been shipped more than 1.5 million pieces as of January 2021.
Power control: Chinese vendors have begun to introduce related products, but there are still no heavyweight products. Players that have products landed have more potential to replace foreign counterparts.
In May 2021, ChipON launched KF32A156, a new automotive MCU subject to AEC-Q100 standard and using kernel processor. KF32A156 is applicable to power supply, motor control and so on. With wider power domains than the previous products, the mass-produced MCU will be available to 70% body and power control unit modules compared with the previous 30%.
Building an independent industry chain is of vital importance in addition to improving layout of product lines. Coordinating the upstream and downstream resources of the industry chain from IP and chip design to foundry and OSAT helps to make homemade automotive MCUs safer, more stable and more reliable.
ResearchInChina’s Automotive Microcontroller Unit (MCU) Industry Report, 2021 highlights the following:
Automotive MCU industry (favorable policies, market size, competitive pattern, industry chain, foundry, technology trends, etc.);
China Automotive MCU industry (localization, industrial layout by domestic companies, and suggestions on how to accelerate replacement of foreign products);
MCU vendors’ supply relationships with automakers (body control MCU, power system MCU, intelligent cockpit MCU, ADAS MCU, etc.);
Automotive-grade products of foreign and Chinese MCU vendors.
Automotive Microcontroller Unit (MCU) and Application Scenario Research Report, 2026
Automotive MCU Research: Increased demand for redundant security drives ASIL D-compliant MCU shipments to exceed 100 million units
In a vehicle EEA, MCUs are widely distributed in various functional ...
China Intelligent Cockpit Patent Analysis Report, 2026
Intelligent Cockpit Patent Research: Cockpit AI, In?vehicle Health, and Infotainment Are Upgrade to Scenario?based and Proactive Functions
From a patent perspective, this report explores the cutting?...
Research Report on Application of VLA Large Model in Automobiles and Robots, 2026
Research on Automotive and Robot VLA: Hybrid Architectures Become Mainstream, VLA Integrates with General World Models, and Reinforcement Learning Serves as Core Engine
Vision?Language?Action (VLA) m...
China Charging Infrastructure (Supercharging, Battery Swapping, V2G, etc.) and High-Performance Supercharging Battery Research Report, 2026
Charging and battery swapping research: as 5C+ supercharging vehicle models go into mass production, the pace of OEMs self-building supercharging networks quickens
800-1000V high-voltage platforms ar...
China Passenger Car Electronic Controlled Suspension Industry Report, 2026
Electronic Controlled Suspension Industry Research: As the First Year of Full Active Suspension Unfolds, Three Technical Routes Race Forward
1. Penetration Rate Surges Three Times, and Electronic Con...
Intelligent Driving SoC Research Report, 2026
Research on Intelligent Driving SoCs: Competition Focus Shifts to L3/L4 Embedded Hardware, and Computing Power of Flagship Vehicle Models Exceeds 1,000 TOPS
In terms of intelligent driving system in...
Automotive AI Large Model Technology Research Report, 2026
Automotive AI Large Model Research: Competition Shifts from "Who Has the Stronger Model" to "Who Boasts Higher Link Efficiency"
ResearchInChina released the Automotive AI Large Model Technology Resea...
Intelligent Vehicle Cockpit Domain Controller Research Report, 2026
Cockpit domain controller research: L3 AIDV intelligent cockpit domain controllers are entering a boom period
Driven by multiple factors such as the continuous evolution of the automotive central int...
Automotive Acoustic System (Audio, Multi-Channel) Industry Report, 2026
Automotive Acoustics Research: Multiple Channels, AI Tuning, and Self-Developed Algorithms Drive the Transformation of High-End Cockpit Sound Fields
I. Automotive Audio Hardware Solutions with 6–9 S...
Autonomous Driving Sensor Chip Research Report, 2026
Research on Autonomous Driving Sensor Chips: Deeply Perceiving the Physical World, Sensor Chips Are Playing A “Leading Role” in Intelligence
In 2026, the autonomous driving sensor chip industr...
Passenger Car Corner Module and Wheel‑Side Control System Research Report, 2026
Wheel-side control research: the “last mile” chassis innovation
Wheel-side control dismantles the traditional drive, braking, steering, and suspension control of the chassis from a "centralized" styl...
Embodied Artificial Intelligence (& Humanoid Robot) MCU Research Report, 2026
Research on Humanoid Robot MCUs: Evolution from General-Purpose Control to High-Value Dedicated Chip Solutions Integrated with Edge AI Functions
MCU (Microcontroller Unit) refers to a compact integra...
Intelligent Vehicle Zone Control Unit (ZCU) Research Report, 2026
ZCU Research: Cross-domain integrated ZCUs are becoming the edge computing nodes of the next-generation zonal architecture
Currently, the mainstream zonal architecture is mainly the quasi-central + z...
Automotive Cybersecurity and Data Security Research Report, 2026
Cybersecurity & Data Security Research: Intelligent Connected Vehicles Enter the Era of “Systematic Offense-Defense and AI-Defined Security”.
Centering on the panorama of intelligent connect...
Report on Breakthrough Strategies of OEMs and ADAS Tier 1 Suppliers for Overseas Layout of Intelligent Driving, 2026
Regulatory Breakthrough, Local System Establishment, OEMs Competing for NOA Layout: Overall Trends of China’s Intelligent Driving Overseas Layout in 2026
Research on overseas intelligent driving layo...
OEMs and Tier1s’ Intelligent Cockpit Platform (Hardware and Software) Innovation Strategy Research Report, 2026
Intelligent Cockpit Platform Research: multi-dimensional cockpit system architecture reconstruction for multi-agent collaboration and proactive intelligent services
The intelligent cockpit software s...
Automotive AIOS Research Report, 2026
Automotive AIOS Research: Mass Production Solutions Are Implemented
Mass Production Solutions Are Implemented on A Small Scale.
In 2026, AIOS starts small-scale implementation, helping to improve v...
Automotive Telematics Service Provider (TSP) Research Report, 2026
TSP Research: Leading providers collectively turn to AI agents to provide all-scenario active services
Telematics Service Providers (TSPs) are the core hub of the telematics industry chain, connectin...