Market dynamics in automotive semiconductor markets
17 November 2004
News
The automotive market has recently attracted new attention (and some re-visitation) from semiconductor suppliers around the globe. In 2001, when the worldwide semiconductor market dropped by 32%, the automotive semiconductor market dropped only 1%. This has been a very stable market over the last few years and suppliers have taken notice.
According to the latest research findings from industry analyst group, Databeans, semiconductors sales for products used in automotive applications are expected to reach $13 bn this year and $15 bn next year. While the market for cars and trucks is growing at a modest 3% annually (on average), the market for 'car chips' is advancing at a 9% pace from 2004 through 2009.
This is a highly competitive and, perhaps, a somewhat harsh market environment, it says. Automakers always seem to have more power and leverage than the automotive electronics suppliers. Every year they demand and can get price reductions of 3% or more on existing products. If suppliers say 'no', then they take business elsewhere.
That being said, Databeans adds that there has been an evolving trend that is adding more flexibility in the supply chain. Many of the automakers have fully divested electronics production, and there is an increasing movement toward outsourcing. The stability of demand in this industry makes this an attractive market opportunity for many electronics suppliers.
For more information contact Susie Inouye, Databeans, [email protected]
Further reading:
Technical resource centre for smart cities
News
Mouser’s infrastructure and smart cities content hub features comprehensive articles, blogs, eBooks, and products from Mouser’s technical team and trusted manufacturing partners.
Read more...
UFS Flash named Best in Show
EBV Electrolink
News
KIOXIA Europe GmbH was named as winner in the Memory & Storage category of the Embedded Computing Design (ECD) electronica Best in Show Awards at the recently held electronica 2024.
Read more...
Save the date for Securex South Africa 2025
News
Home to Africa’s largest collection of security solutions, Securex South Africa returns to Gallagher Convention Centre in Midrand from 3 to 5 June 2025.
Read more...
Trina Storage ranked in top 10
News
Amidst the global energy storage market, Trina Storage has once again earned recognition from authoritative institutions with its outstanding innovation capabilities and global layout.
Read more...
2025 outlook for DRAM is poor
News
According to TrendForce, weak demand outlook and rising inventory and supply forecast to pressure DRAM prices down for 2025.
Read more...
Price hike to challenge energy reforms
News
Eskom’s proposed 44% price hike could undermine renewable energy gains despite tech innovation.
Read more...
IO Ninja debugging tool
RF Design
News
Tibbo has released a major update to IO Ninja, its versatile communications debugging tool for Windows, Linux, and macOS.
Read more...
Young SA robotics team takes world title
News
In a demonstration of innovation and teamwork, Texpand, a South African youth robotics team based in Cape Town, recently made history by winning the 2024 FIRST Tech Challenge (FTC) World Championships.
Read more...
From the editor's desk: A brave new world
Technews Publishing
News
The technology Tesla currently uses in its cars from the batteries, power electronics, controllers, through to the mechanics, gearboxes, and the AI inference computer and software have are incorporated in the development of Optimus, allowing the development of the robot to gain impressive features in a relatively short time span.
Read more...
Seven Labs partnership enhances local electronics distribution
Seven Labs Technology
News
Aimed at revolutionising the electronics distribution landscape in South Africa, Seven Labs has announced a partnership with LCSC, one of China’s most reputable electronics distributors.
Read more...
printer friendly version