Automotive electronics: the price of automotive MCU may still rise in the second quarter. Lixun will add funds to layout the upstream production line of new energy vehicles
In the second quarter, the growth rate of vehicle MCU was about 15-20%. According to DIGITIMES, the top five automotive chip manufacturers of Infineon, NXP, Renesas, Texas Instruments and STMicroelectronics are ready to further increase the quotation of automotive MCU or power devices to cope with the rising prices of raw materials such as copper, gold, silicon wafer and oil. Renesas, Toshiba and NXP have decided to raise the price of auto chips by 10-20% in the second quarter. Infineon indicated in mid February that it had informed downstream distributors of the upcoming price increase. Infineon said that the total value of backlog orders in 2022 reached 31 billion euros, more than twice the revenue forecast of 13 billion euros in 2022. Of the 31 billion euro orders, 80% are expected to be delivered in 2022. The annual production capacity in 2022 is still in short supply, especially in the automotive field.
Luxshare Precision Industry Co.Ltd(002475) plans to increase by 13.5 billion yuan and spend 2 billion on smart cars. On February 21, Luxshare Precision Industry Co.Ltd(002475) issued an announcement that the company threw out a 10 billion fixed increase fund-raising plan for the construction of terminal consumer electronics and new energy vehicle products. On February 21, 2022, Luxshare Precision Industry Co.Ltd(002475) announced that it would raise 13.5 billion yuan through non-public offering. Among them, the funds raised for the “new energy vehicle high voltage link system product line construction project” are 1.5 billion yuan, and the funds used for the “intelligent vehicle connection system product line construction project” are 500 million yuan. In 2022, Luxshare Precision Industry Co.Ltd(002475) industrial layout is optimistic about the prospects of new energy vehicles and automotive electronics industry. The company is expected to grasp the development opportunities of precision electronic component production and system assembly industry in the upstream of new energy vehicle industry. Outside the core field of consumer electronics, the company has already laid out and formed four major automotive products. In the future, the double dividend of the growth of new energy vehicle sales and the improvement of vehicle electronization will help to promote its long-term development.
We believe that although automotive chips have experienced a shortage of one and a half years since the second half of 2020, the supply and demand of the industry has not been significantly alleviated so far. The delivery time of automotive chips led by automotive MCU chips remains at a long level. At the same time, the price continues the upward trend since last year, and it is still difficult to alleviate the shortage in the short term. On the demand side, with the promotion of automobile intellectualization, electrification and carbon neutralization policy, intelligent vehicles will usher in a period of rapid growth, and the industry boom is expected to remain high in the next few years. In addition, with the traditional consumer electronics industry gradually entering the stock game era, the incremental changes in the industry are reduced and the competition is intensified. The large traditional consumer electronics manufacturers begin to seek the transformation of new business areas, Luxshare Precision Industry Co.Ltd(002475) layout of smart cars may drive the further expansion of the automotive electronics field.
Risk tips
Downstream demand is lower than expected; Covid-19 epidemic repeatedly caused the risk of production capacity obstruction.
