Sunplus expects automotive orders to rise in 3Q26 as memory costs threaten demand

Sunplus’s forecasted rise in automotive orders reflects growing demand for smart cockpit and ADAS chips, yet escalating memory costs are constraining overall market demand and customer willingness to place orders. Upstream memory price hikes will cascade through the supply chain, forcing chip designers to pivot toward high-integration, low-power solutions. From a compliance standpoint, ongoing U.S.-China tech decoupling intensifies supply chain risks, compelling firms to navigate dual regulatory standards. Competitors may seize market share by accelerating investment in automotive-grade chips. In the next 12 months, sustained cost pressure could prompt clients to seek alternatives, triggering industry consolidation. Long-term, the automotive semiconductor sector will increasingly rely on self-reliant technologies and localized sourcing, driving deeper supply chain integration.