Win Source’s strategy for the transformation and upgrading of the automotive semiconductor industry

Electrification and Intelligence are current key themes of the automotive semiconductor industry. Development in these areas is dependent on the progress made in underlying new technologies such as 5G and the Internet of Things. Whilst these developments continue to mature in downstream markets and segments, so demand continues apace for semiconductors to support them. Demand and growth in these areas spurs the impetus for greater development in the semiconductor industry. Data from Deloitte shows that automotive semiconductors will account for 10%, and interestingly the greatest, compound growth rate over the next five years, as automobiles become the main driving force for the growth of the semiconductor industry.

Caused by insufficient production during the Covid-19 pandemic, the global shortage of semiconductors continues to be felt in the automotive sector. Behind the scenes however, the pace of development in electrification and intelligence didn’t falter.

When car companies reduced chip purchases as market demand fell away, consumer electronics accelerated and absorbed all the extra production capacity. Now, automotive chip production is limited due to its lengthy and complex production processes, though the shortage is exacerbated by a significant increase in demand, post-pandemic.

As production capacity opens up, automotive chips will drive the semiconductor industry. The smart terminals in our automotives become the nerve endings of the smart age, with the requirement for capabilities to connect, perceive, express and compute: functionalities all in need of the support of numerous chips.

Once intelligence in automotive manufacture reaches this level, the value chain of the industry will have upgraded into what’s known as the ‘smiling curve’. The semiconductor supply chain will indeed smile as the focus of high profits and added value for car makers will move from traditional chassis and body fields to the intelligence of the system. Automotive chips will revalue themselves as the intelligence they power becomes the new profit growth point.

The semiconductor supply chain must play its part by assisting the upgrade and transformation of the automotive industry. In the first instance enterprises along the supply chain can work towards and promote a healthy industrial chain ecology, encouraging innovative research and development in both chip companies and automobile companies. The semiconductor supply chain must also strengthen capacity building as well as production planning to cope with the automotive industry’s requirements of them.

Assisting the status quo, Win Source holds a wide range of automotive industry supply resources in locations around the globe for both traditional and new energy automobile manufacturing. The one-stop procurement platform of Win Source which holds more than one million SKU from over 3000 manufacturers, continues to stock components, such as diodes and transistors, from auto part manufacturers including Bosch, Infineon and NXP Semiconductors, amongst others. The company specialises in the provision of obsolete and commonly used electronic components, which buyers can easily access 24/7 through the platform.

The company offers a range of solutions to solve customer needs from the source such as providing one-stop solutions from design to terminal. Alternatively, car company customers can use Win Source’s replacement solutions to find the replacement parts they need and avoid production interruptions.

Furthermore, after more than 20 years of accumulation Win Source offers a complete set of strict testing standards which enhance the relatively long service life of auto parts and the extremely high safety requirement of auto parts. Employing the most advanced testing equipment, as well as the profound knowledge base of its experienced field application engineers, Win Source can also assure customers with its high standard certifications such as AS9120B, ISO 9001:2008, ISO13485, ISO28000, and ESD-S20.20.