According to China's Taiwan Economic Daily, automotive chip manufacturers such as Infineon, Renesas, Texas Instruments and Rapidus have all started to build new fabs. The industry estimates that the four companies will spend $25 billion to expand production, which may reduce existing outsourcing orders to Taiwan Semiconductor Manufacturing, United Electric and other wafer factories.

Morgan Stanley points out that the global automotive electronics market was about $150 billion in 2018 and is projected to grow to $287 billion in 2025, mainly due to the continued increase in EV penetration and the increased use of Advanced Driver assistance systems (ADAS). In 2025, as much as 35% to 45% of EV material costs are expected to be automotive electronic components. Is 2.5 times of traditional cars, the overall growth of vehicle electricity demand can be expected.

In recent years, in order to shorten the delivery time, major automotive chip manufacturers directly contact with wafer foundries for cooperation, especially the next generation of automotive IC design is more complex and requires more high-end or special semiconductor manufacturing process support. As these IDMs build up their own capacity, outsourcing orders are bound to be cut.