Management Summary

MCU (microcontroller unit) is the semiconductors category with the highest lead time. In addition, MCUs enables critical functions for ADAS (advanced driver assistant systems).

MCU lead times are twice as high as the market average, caused by the current market phase within the supply chain cycle.

Current bottleneck in the value chain is the front-end.

The top 5 MCU designers control ~90% of the market. TSMC (Taiwan Semiconductor Manufacturing Company) controls the MCU foundry with ~70% market share.

To build resilient supply chains for MCUs, the automotive industry highly depends on managing the TSMC monopoly.

Strategic partnerships in the value chain, dual fab approaches, coopetition and investments in R&D (research & development) offer potential solutions for the automotive industry.


1 | MCU market, value and functions in the car

2 | Value stream breakdown focus front-end

3 | How to manage TSMC's monopoly

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