The automotive share of the whole IC market has under no circumstances been larger than 9.% even though the communications share of the IC sector peaked at 37.2% in 2013, in accordance to IC Insights. In 2020, the communications IC current market was 4.7x the measurement of the automotive IC sector.
Pushed by the international explosion of smartphone demand, the communications industry almost doubled its share of the IC sector from 18.5% in 1998 to 35.% in 2020, IC Insights claimed. In the meantime, automotive’s marketshare enhanced from 4.7% in 1998 to 8.7% in 2019 just before slipping back to 7.5% throughout Covid-plagued 2020.
In many conditions, automotive ICs symbolize only a little part of an IC supplier’s complete product sales, IC Insights mentioned. At TSMC, for instance, automotive applications have in no way accounted for additional than 5% of its profits.
Making automotive ICs does not normally need primary-edge technologies – lots of non-memory automotive ICs go on to be manufactured on 200mm wafers – but it does require strict adherence to rigorous trustworthiness and tests demands and a motivation by the IC producer to provide a customer’s extended lifecycle wants. It is also truly worth noting that automotive IC finish-consumers are infamous for staying rough negotiators, quite often leaving slender margins for the automotive IC supplier.
Even with the latest automotive IC scarcity, the normal advertising cost for many automotive IC merchandise has remained quite continuous, IC Insights reported. For instance, the ASP for automotive application-precise ICs was US$.96 in 2020 – 15% a lot less than the whole software-certain IC market place ASP final yr – and only US$.95 in the to start with quarter of 2021.
Numerous IC sector headlines have not long ago focused on the lack of automotive ICs, but given its fairly smaller size, powerful expansion in the automotive segment is not envisioned to substantially raise the advancement amount of the full IC sector this year, IC Insights thinks.
The automotive IC marketplace is forecast to surge additional than 25% in 2021, right after a 3% drop las 12 months, in accordance to IC Insights.