More advanced data transfer solutions in in-vehicle information systems increase the need for DRAM components. The industry’s DRAM requirement is estimated to grow 30 percent annually.
The chip shortage experienced in the automotive industry recently turned attention to this point. Those who remember traditional tools of the past years may think why such demand for chips has arisen, but now the tools are hungry for chips.
Annual demand rate exploded
Our cars, which we could only play cassettes for a while, have become extremely smart today. Even vehicles with a basic information display require controllers and DRAM products to process data from sensors. It should be noted that Tesla has set a target of 20GB DRAM in its vehicles and even includes GDDR5 memory due to higher bandwidth. As for DRAM consumption, Tesla catches PC manufacturers in certain scenarios.
Analysis estimates that the DRAM demand in the automotive industry will increase by 30 percent annually for the next 3 years. The average DRAM capacity of cars this year will be around 4GB. However, this average is expected to increase further in the coming years.
Micron is currently the leader of the automotive memory market with 50 percent. In addition to traditional products such as DDR2, DDR4, it also offers flexible products such as LPDDR and GDDR. It also has a very wide portfolio including NAND Flash, NOR flash. In addition to industry giants such as Samsung and SK Hynix, Taiwanese manufacturers such as Nanya Tech and Winbond are also increasing their share in the sector.
Since the vehicles offer a service life of 7-10 years compared to other devices, the components must be durable accordingly. Automotive DRAM products therefore require a more stringent process than standard products. This increases production time and cost.
Here, the ever-increasing demand and sensitive production processes caused TSMC, whose lines were not sufficient, to clog at some point. In the second half of the year, TSMC plans to overcome the bottleneck with significant investments and engineer reinforcement. The chip supply shortage will also be resolved towards the end of the year.