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Auto chip growth to decelerate

The auto chip market grew 5.7% this year to $29.6 billion and will grow 3.7% next year, according to Reportlinker.

By David Manners - Electronics Weekly, Dec. 17, 2015 – 

2016 growth will stall due to global deflation resulting in a depreciation of the Japanese yen and the euro against the dollar second, and because China, the world's largest auto market, is very likely to go into decline. China's auto market may slide by 2% in 2016.

Automotive semiconductor falls into five categories: power semiconductor, sensor semiconductor, processor (main for MCU) semiconductor, ASSP (principally Connectivity and Amplifier) semiconductor, and logic semiconductor.

In the field of traditional automobiles, the semiconductor costs for each unit approximate $320, of which power occupies 26% and sensor 16%.

In HEV, however, this figure is $690, of which power represents as much as 75%. In EV, the semiconductor costs comes to $700, of which power accounts for 55%. But due to ongoing depressed oil prices, the market space of HEV/EV has been considerably squeezed. If the oil price returns back more than USD100, then the automotive semiconductor market will increase significantly.


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