Auto Sector Stuck in Neutral as a Few IC Makers Recover

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eetimes.com, Jun. 06, 2020 – 

While some semiconductor sectors are showing signs of recovery, the auto segment continues to take a beating as the pandemic extends into the summer of 2020.

With Marvell and a handful of other chip makers showing signs of life, including new 52-week highs for stock prices, the automotive electronics sector remains stagnant. London-based Omdia is forecasting a 16-percent annual revenue decline for the hard-hit automotive power semiconductor segment. That works out to be about $9.1 billion in 2020 revenues.

The contraction reflects declining vehicles sales and plunging auto production, the market tracker said. Hopes earlier in the year for a rebound in automotive power semiconductor sales and revenue quickly evaporated when auto assembly plant closures in China quickly spread along with the novel coronavirus to Europe and then on to North America.

"At the same time, demand for new vehicles has fallen as dealerships were closed and lost jobs and wage reductions in many parts of the world combined to slash demand," added Kevin Anderson, lead analysts for Omdia power, automotive and industrial semiconductors practice.

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