Global Automotive Semiconductor Market Overview

In April 2024, according to the latest report released by TechInsights, the global automotive semiconductor market saw a year-on-year revenue growth of 16.5% in 2023, increasing from $594 billion in 2022 to $692 billion in 2023. Infineon led the market with a 14% share, with the top five manufacturers collectively occupying 50% of the market share.

In 2023, five out of the top ten automotive semiconductor suppliers saw an increase in market share. In terms of ranking, NXP Semiconductors ranked second with a 10% market share, STMicroelectronics ranked third with a 9% market share, Texas Instruments ranked fourth, and Renesas Electronics maintained its fifth position for the second consecutive year.

According to the "2023 Automotive Semiconductor Trends" report published by Yole, the automotive semiconductor market is projected to grow from $43 billion in 2022 to $84.3 billion in 2028, with a compound annual growth rate of 11.9%. The value of semiconductor devices per vehicle is expected to increase from approximately $537 in 2022 to about $912 by 2028, with the number of semiconductor devices per vehicle growing from 848 (in 2022)

to 1079 (in 2028）.

With technological advancements, electrification and Advanced Driver Assistance Systems (ADAS) are poised to become major drivers of rapid growth in the automotive semiconductor market.

In terms of electrification, the market for power devices in new energy vehicles (xEVs) has seen significant growth, largely propelled by the adoption of SiC MOSFET power modules. Passenger cars and light commercial vehicles are currently entering a "market-driven" phase, while medium and heavy-duty commercial vehicles are also undergoing electrification.

Four key technological trends have emerged in powertrain and electrification: the integration of multiple high-voltage systems, the application of 800V fast charging, increased penetration of silicon carbide in the supply chain, and the growing popularity of dedicated BEV platforms.

In addition to silicon carbide, the application of silicon-based IGBTs continues to rise, particularly with hybrid module solutions combining silicon-based IGBTs and SiC MOSFETs, which can overcome cost barriers associated with adopting silicon carbide devices. Automotive electrification applications have been a primary driver for silicon carbide power devices in recent years and are expected to remain so over the next five years, with new energy vehicles being a major driver of silicon carbide applications.

Driven by safety regulations and the pursuit of higher levels of automated driving, the adoption of ADAS is rapidly increasing. ADAS sensors come in various forms, primarily composed of cameras, radars, and LiDARs. Following cameras and radars, LiDARs are entering the market for the purpose of automation in driving.

European and American automakers restrict the use of LiDAR to F-class vehicles, whereas Chinese automakers have already applied it to D-class vehicles. These vehicles are much cheaper than F-class cars and have higher sales volumes. In fact, over 25 different Chinese OEMs are using LiDAR on their own vehicles.

Powerful processors are needed to handle the continuously growing data streams from sensors. The diversity of sensors will be maintained because no single sensor can monitor the surrounding environment of the car under all conditions. The computational power required by processors depends on the number of tasks, number of sensors, sensor resolution, complexity of situations, and the required level of redundancy. In the long term, ADAS of level 3 and above will drive the continuous growth in demand for memory and computational power.

The global shipment volume of silicon wafers for automotive semiconductors is expected to increase from approximately 37.4 million pieces in 2022 to around 50.5 million pieces in 2028, with memory and logic chips being the main contributors to 12-inch silicon wafers. In terms of process nodes, most wafers will adopt processes of 350nm and above. Power discrete devices and modules account for the vast majority of wafer shipments.