XSD - GlobalFoundries And Bosch Emphasize Shift In Automotive Semis

• When car orders tanked immediately after the pandemic hit, car makers dramatically cut their orders, and thus, chip suppliers shifted their manufacturing capacity to components for all the other high-tech devices whose sales soared during the pandemic.
• When car sales started picking up, automakers went back to these chip suppliers asking for more. Unfortunately, automotive parts had been moved to the back of the priority line, particularly because some of these automotive chips were low-margin, and it isn't a fast process to switch production lines back.
• In the case of Bosch working directly with GlobalFoundries to develop a new radar chip focused on Advanced Driver Assistance Systems (ADAS) applications, Bosch essentially short-circuited the multi-tier supply chain and took their own design straight to a chip manufacturing partner in GlobalFoundries.

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