Booming automotive market offering new semiconductor opportunities

1 March 2000 News

A new report titled 'Automotive Chips 2000', which covers the worldwide automotive market for integrated circuits and other semiconductors through 2005, points out that the basic design of automobiles is about to change in dramatic ways.

Prepared by technology analyst group Forward Concepts, an example it gives is that the hydraulic system for brakes will disappear as new electromechanical brakes controlled through a drive-by-wire control system takes its place. The report details how the 12 V electrical system will give way to a new 42 V standard, allowing smaller wires to be used at the higher voltage for electromechanical control of those brakes, electrical motors and other actuators in upcoming vehicle designs.

New multiplexed bus systems will affect all electrical devices, and with change there is opportunity in the 50 million-vehicles-per-year market. As the 'digital car' arrives, the semiconductor content in cars will soar according to the market study. The report cites new multimedia, safety and security, and body electronic applications as leading the way for new chips. The overall market for semiconductors in the automotive market will grow at an annual rate of 8,8%, from $9,5 billion in 1998 to $17 billion 2005, it predicts. However, several chip types will experience particularly strong growth in this market, and the report cites digital signal processor chips (DSPs) as experiencing a compound growth rate of 25% over the forecast horizon.

The report also details the major automotive electronic subsystems and their respective chip contents by type.

For further information about this publication contact see www.forwardconcepts.com

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