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:

SACEEC celebrates standout industrial innovation on the KITE 2025 show floor
News
Exhibitor innovation took the spotlight at the KITE 2025 as the South African Capital Equipment Export Council announced the winners of its prestigious New Product & Innovation Awards.

Read more...

---

SA team for International Olympiad in Informatics
News
The Institute of Information Technology Professionals South Africa has named the team that will represent South Africa at this year’s International Olympiad in Informatics.

Read more...

---

Anritsu and Bluetest to support OTA measurement
News
Anritsu Company and Sweden-based Bluetest AB have jointly developed an Over-The-Air measurement solution to evaluate the performance of 5G IoT devices compliant with the RedCap specification.

Read more...

---

The current sentiment of the global electronics manufacturing supply chain
News
In its latest report, the Global Electronics Association provides an analysis of the current sentiment and conditions in the global electronics manufacturing supply chain as of June 2025.

Read more...

---

Global semiconductor sales increase in May
News
The Semiconductor Industry Association recently announced global semiconductor sales were $59,0 billion during the month of May 2025, an increase of 19,8%.

Read more...

---

New president for Avnet EMEA
News
Avnet has announced that Avnet Silica’s president, Gilles Beltran, will step into the role of president of Avnet EMEA.

Read more...

---

DARPA sets new record for wireless power beaming
News
In tests performed in New Mexico, the Persistent Optical Wireless Energy Relay program team recorded over 800 W of power delivered for about 30 seconds with a laser beam crossing 8,6 kilometres.

Read more...

---

Nordic Semiconductor acquires Memfault
RF Design News
With this acquisition, Nordic has launched its first complete chip-to-cloud platform for lifecycle management of connected products.

Read more...

---

Trina storage demonstrates high efficiency and long-term reliability
News
Independent testing confirms 95,2% DC efficiency and 98% capacity retention after one year of operation.

Read more...

---

From the editor's desk: AI – a double-edged sword
Technews Publishing News
As with any powerful tool, AI presents challenges, some of which, if not carefully managed, threaten to undo the potential that it can offer.

Read more...

---