Due to the failure to negotiate a labor agreement, the United Auto Workers (UAW) launched a historic general strike on September 15, impacting the production capacity of the three major U.S. auto giants. In addition to the three major car manufacturers, the automotive chip industry will probably be significantly affected by this wave of strikes. As for Tesla, which has always prohibited employees from forming unions, it is expected to benefit from it.
Foreign media such as Yahoo Finance reported that with the trend of smart cars, the demand for automotive chips has surged, with each new car equipped with approximately 3,000 chips. Affected by the UAW strike, the stock prices of global automotive chip giants NXP and Texas Instruments fell by 2.62% and 2.07% respectively on the 15th. The stock price of TSMC ADR, which has the largest automotive chip foundry market share, fell by 2.43%.
According to data from market research company Counterpoint, in terms of revenue scale, NXP’s revenue contribution from automotive chips will be as high as 52% in 2022, and Texas Instruments will also take a high proportion of 25%, accounting for 5% of TSMC’s revenue. %.
The UAW proposes to increase wages by 36% in the next four years, abolish the Tiered Wage system (which refers to new employees hired after 2007 having lower salary levels than old employees), restore the traditional employer-paid pension system (Pension), and adjust wages based on the cost of living ( Cost-of-Living Adjustments), as well as increasing pensions and other demands, are in a stalemate with employers.
This is the first time since the UAW was founded in 1935 that the three major auto giants Ford, General Motors (GM) and Chrysler parent company Stellantis have been on strike simultaneously.
The Anderson Economic Group, a think tank headquartered in Michigan, estimates that even if the UAW strikes for 10 days, it will still cause a loss of US$5.6 billion to the US economy, including a loss of US$989 million to the three major auto plants and a loss of US$859 million in wages for striking workers.
However, Wedbush analyst Dan Ives issued a report on September 14 stating that Tesla will be the big winner once the strike drags on, on the grounds that Tesla does not have a union and will not face similar problems. If the strike lasts for more than four weeks, it may affect Ford, General Motors and Stellantis’ electric vehicle launch schedules in the first half of 2024 will weaken their ability to compete with Tesla.
(This article is reprinted with permission from MoneyDJ News; first image source: shutterstock)
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