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#News(General) [ via IoTForIndiaGroup ]
In the new environment, a car’s electronic components and functionalities—already an important buying consideration—may become the feature that differentiates it from the crowd.
Semiconductors have enabled most of the recent innovations in automotive technology, including vision-based, enhanced graphics processing units (GPUs) and application processors, sensors, and DRAM and NAND flash. As cars become even more complex, demand for automotive semiconductors will continue to rise steadily and provide a major new long-term growth engine.
With many semiconductor companies aggressively pursuing automotive opportunities and forming partnerships along the value chain, players that move more slowly might be left behind. This article discusses three topics that all semiconductor companies must consider as they prepare for the future: trends shaping the automotive landscape, factors that affect demand for automotive semiconductors, and major strategic issues that players must address as they adapt to the evolving market.
Between 1995 and 2015, semiconductor sales to automotive OEMs rose from about $7 billion to $30 billion (Exhibit 2). With this increase, automotive semiconductors now represent close to 9 percent of the industry’s total sales. Current projections suggest that sales of automotive semiconductors will continue on their upward trajectory, increasing about 6 percent annually between 2015 and 2020—higher than the 3 to 4 percent growth predicted for the semiconductor sector as a whole. That would put annual sales for automotive semiconductors in the $39 billion to $42 billion range.
Identifying pockets of growth among diverse automotive-application segments. We examined growth patterns in the core-application segments: safety, powertrain, body, chassis, and driver information. Trends suggest that the greatest growth through 2020 will occur within the safety segment
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