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Electronics and Semiconductors

IHS: Chinese Automotive Semi to Reach $6.2 Billion This Year

29 July 2015

Powertrains, infotainment and body-convenience electronic systems are the main drivers of automotive semiconductor growth in China, according to IHS. While vehicle ships are slowing down, semiconductor revenues of $5.6 billion in 2014 will grow nearly 11% year-over-year in 2015, reaching $6.2 billion by year end.

According to Alex Liu, semiconductors and component analyst at IHS, “There is increasing auto industry focus on power efficiency and green energy, as well as the pursuit of greater safety and a better overall driving experience. For that reason, additional and higher performance semiconductors will be required in automotive applications, like direct injection systems in power engines, advanced driver assistance systems and safety applications.”

The latest IHS Automotive Semiconductor Report—China identifies Freescale as the leading automotive semiconductor company in 2014, with 15.5% market share, based on bill-to China sales. Freescale is strong in the microcontroller and processor market. STMicroelectronics is next in line, with 14% and NXP Semiconductors, with 12% of the China market.

Local automotive design market revenue in China was estimated to reach $1.5 billion in 2014, led by automotive infotainment, which includes car radios and navigation systems. IHS estimates that the total local design market in China will grow at a 13% compound rate from 2014 to 2019.

“Local Chinese companies are strong in the automotive aftermarket, because they have a price advantage, require less time to market and have more flexible design processes than their non-local competitors,” Liu says. “With the accumulation of technical knowledge and close ties to original equipment manufacturers, some local players have also gradually entered the applications market. They provide semiconductors for low-end auto-body electronic applications where quality and reliability are less critical, such as parking assistance in advanced driver assistance systems and automotive infotainment.”

The report includes information on the light vehicle and automotive semiconductor market in China, focusing on analysis of China’s automotive infotainment market before- or after-market, including main supply chain, device makers and key component supply status.

Related links:

http://press.ihs.com/press-release/technology/chinese-automotive-semiconductor-revenues-hit-62-billion-2015-ihs-says

Related articles:

Power Semiconductor Report from PCIM Europe 2015

Deep Learning: Automotive Industry Takes a Giant Leap Forward

Freescale RF Power Amplifiers Lower System Cost



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