Friday, December 2, 2022
The market for automotive semiconductor chips is expected to reach more than $80 billion in 2027, says Yole Developpement.
Electrification and ADAS are the main drivers for this growth for which the most common devices are Si IGBT modules and SiC MOSFET modules which are used in the main inverters for e-motor traction.
Despite a relatively flat light vehicle market, the market for automotive semiconductor chips is expected to increase from $44 billion in 2021 to $80.7 billion in 2027 at a CAGR of 11.1%.
This represents a semiconductor chip value of ~$550/car, growing to ~$912 in 2027.
There is also an increase in the number of chips in cars, from ~820 chips today to ~1100 chips per car in 2027.
The rapid increase in car electrification demands new types of substrates, such as SiC for power electronics. SiC is expected to represent 1,130 kwafers in 2027.
While still low compared to the ~30,500 kwafers of Si expected for 2027, SiC will grow faster than Si and GaAs /Sapphire.
ADAS is also an important driver, and MCU s with cutting-edge technology as low as 16 nm / 10 nm will go into ADAS, including radar and other sensor controls.
ADAS levels 4 and 5 will drive increasing demand for more memory (DRAM) and computing power.
For electrification, vertical integration is becoming popular among OEMs. It can work out in multiple ways: full integration down to the component level, system integration and subcontracting build-to-print parts, strategic cooperation/direct investments with key component suppliers, etc.
The conventional automotive supply chain needs to examine its position and transform itself through JVs, M&As, and new investments and divestments to retain its competitive edge. .
“Supply chain management will change as OEMs will need to negotiate directly with chip manufacturers, learn from the consumer industry, and keep ‘buffer stock’,” says Yole’s Eric Mounier, “they must work closer with chip manufacturers on volume forecasts and long-term orders. Just-in-time manufacturing, pioneered by Toyota in the 1960s, no longer works with chip manufacturers in the current geopolitical climate.”
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