Automotive Semiconductors - Is there a Pulse?
Undeniably, the current economic crisis has hit the automotive industry hard. And although the market is in dire straits, the mandated restructuring that has begun to occur will, in the long run, benefit a growing market for automotive technology. Inefficiency that for a long time has been building in this industry appears to have reached a level of urgency, where the environment adapts more quickly to change versus the status quo. Crisis drives fear and fear drives change.
The outlook for automotive electronics near term is not good and it's even worse for technology suppliers supporting this segment, but as all crisis events are unpleasant, once the storm moves through, opportunity begins to reseed itself. Worldwide automotive semiconductor sales reached just over $20 billion in 2008 and this year the report is expecting a contraction of 25 percent with recovery back to the $20 billion level predicted to occur in 2012.
This recovery will be driven by the increasing electronic content in vehicles and the continuing support for R&D, a lifeline to the automotive semiconductor industry, while production is on life support. The report estimates that the percentage of electronic content in vehicles reached 13 percent, meaning that for a vehicle costing say $12,700USD to produce, $1,646 worth of electronics are inside. In 2009, that percentage is expected to be 13.5 percent and 14.8 percent by 2012. Beneficiaries of this rise will be suppliers of microcontrollers, analog, and sensors primarily, many of which are already at the top of the leader board in automotive semiconductor revenue share.
Players include Freescale Semiconductor, Infineon Technologies, STMicroelectronics, Renesas Technology, and Bosch. Freescale continues to remain the market share leader in automotive semiconductor products with 9.5 percent share of the $20 billion automotive semiconductor market followed by large analog and sensor players, Infineon and ST.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: http://www.electronics.ca/publications/products/Automotive-Semiconductors.html
Electronics.ca Publications is a world-class research network and publishing company whose focus is technology and market research for the electronics industry. Our network spans dozens of areas of electronics expertise, and taps the knowledge of researchers and analysts internationally. We deliver critical information on the semiconductor, advanced materials, nanotechnology, electronics manufacturing, wireless technology and converging markets, to name a few.
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