Since last year, I have rarely attended forums, not because I dare not go, but because once I go, I will be surrounded and blocked. What's the reason? Lack of chips, "said Chen Yudong, President of Bosch China, helplessly at the" 2022 China New Energy Vehicle Development High Level Forum "held in Wuhan, Hubei Province on September 23.
At the beginning of his speech, Chen Yudong used his personal experience in Wuhan to explain the difficulties that the shortage of chip supply has brought to the automotive industry, especially to the whole vehicle enterprises. From yesterday noon to this afternoon (September 23rd), I have been surrounded by four customers asking, 'When can we deliver?' Everyone is concerned about the chip supply issue in the fourth quarter of this year. In fact, we expect to have a shortage of 300000 VCUs in September, and the situation is very severe
Chen Yudong stated that currently, chip shortages have led to an imbalance between supply and demand in the semiconductor industry and automotive companies, with a basic shortage of 300000 controllers per month, resulting in many companies being unable to complete their production and sales tasks. We are very sorry that each host factory cannot complete the task, and we have a great responsibility
A reporter from China Business News learned in an interview that Bosch, as a leading supplier in the global automotive parts industry, holds a crucial position in the automotive industry chain. Data shows that in 2021, Bosch achieved a global sales revenue of 78.7 billion euros, of which the automotive business accounted for 58%, reaching 45.3 billion euros.
As a technology company, we do not seek to be the largest, but to provide the best service, products, and innovation, "said Chen Yudong.
The Chinese market is equally indispensable for Bosch. According to data provided by Chen Yudong, Bosch achieved sales of 128.6 billion yuan in China in 2021, a year-on-year increase of 9.6%; The automotive business accounts for 75%, while non automotive business accounts for 25%, including industrial technology, energy and building technology, and consumer goods.
The new energy, digitalization, and more ecological transformation of the automotive industry also require Bosch to face the future. Bosch is a company that benefits the most from competition. Competition makes us dare not slow down, and competition makes us run faster, "said Chen Yudong.
Regarding the development of the domestic market, Chen Yudong stated that Bosch is actively laying out a deep layout for future electrification, intelligence, and networking.
In terms of electrification, Bosch is moving faster. In addition to battery cells, Bosch's solutions cover hybrid, plug-in hybrid (PHEV), pure electric, and fuel cells, all of which provide technical solutions in China. At the same time, Bosch is also involved in the markets of two wheelers, sedans, light trucks, heavy trucks, etc., and will lay out different electrification solutions in various fields.
In terms of intelligence and networking, Bosch has laid out numerous intelligent chassis and steering products. The current star product iBooster+ESP combination is the most important intelligent braking product required for new energy vehicles. At the same time, Bosch provides a wide range of sensing semiconductors in the semiconductor field, which are widely used in airbag controllers and vehicle dynamic control. In addition, Bosch also provides many "thermal management system+VCU+actuator+sensor" combination products for smart cars.
Moreover, according to Chen Yudong's introduction, Bosch is actively expanding its layout towards the development of China's new energy industry. Since 2021, we have established a fuel cell joint venture in China and set up a steering gear manufacturing and research and development center in Wuhan. After its completion, this research and development center will be our main steering gear testing base and design software development base in China
Regarding the current development status of the domestic new energy vehicle market, Chen Yudong also shared some of his concerns and thoughts during the on-site speech.
Firstly, in terms of chips, Chen Yudong bluntly stated, "The biggest concern is still chip supply." According to his introduction, Bosch is not only a chip manufacturer, but also the largest chip user and purchaser. At present, from fuel vehicles to new energy vehicles, the number of chips required for a vehicle is roughly 500-3000. Bosch's self-produced chips have an average of only 17 chips per vehicle worldwide, and the chips used for the main controller are about 750, of which the vast majority, more than 700, are purchased, mainly from the top ten semiconductor companies in the world.
At present, the chip industry is thriving in China, and we hope that domestic chip companies can develop automotive grade chips more quickly and steadfastly. However, this industry requires large investment and long cycles, and we hope that chip companies can make more efforts in China. "Chen Yudong suggested that we also hope to encourage international mainstream chip companies to invest and set up factories in China. At present, most international chip companies are only doing packaging in China, hoping to have more wafer fabs and packaging factories come to China.
In terms of technological innovation in new energy vehicles, Chen Yudong expressed the hope that all new energy vehicle companies can balance the relationship between market and innovation, abide by basic business logic, and balance commercial operations on the basis of technological innovation.
Chen Yudong also pays special attention to intellectual property protection issues and suggests that relevant departments better focus on intellectual property protection work. Intellectual property protection is one of the policy guidelines for the development of our country. Only when intellectual property is well protected can people's enthusiasm for innovation soar. We hope that both capital and enterprises have the most basic respect for intellectual property
In addition, in terms of talent, Chen Yudong suggests absorbing and cultivating more local talents, especially software talents. According to its introduction, Bosch has established independent software research and development centers in Wuxi, Shanghai, and Guangzhou, serving various departments under Bosch.
I hope our software center can develop rapidly, "said Chen Yudong. Bosch currently has over 55000 employees in China, including 8850 R&D personnel, of whom about 30% are software talents. I hope that the proportion of software talents can be increased to over 50% as soon as possible to truly achieve" software defined cars ".
Bosch is a company that is firmly committed to globalization and supports development in China. We will deeply cultivate the Chinese market and invest in China with unwavering determination. Our Bosch China team fully regards Bosch's development in China as a cause to strive for in our own market, "Chen Yudong concluded.