Automotive 3rd largest end market for power semis
In 2014, the automotive sector significantly outperformed the overall market average for semiconductors.In fact, the automotive market overtook data processing to become the third largest end market for power semiconductor applications, according to IHS.
Based on information from the IHS Power Management Market Share and Supplier Analysis report, demand for semiconductors by the automotive industry was particularly strong in advanced driver assistance systems ADAS and infotainment systems. In the power management semiconductor market, power integrated circuits ICs grew much faster than traditional power discrete solutions. The automotive power IC category in 2015 is forecast to grow 8 percent, year over year, while discrete revenue is projected to remain flat during the same time period.“One strategy that automakers are undertaking to control research and development costs is to develop shared designs, components, engineering, and production platforms, and using the same electronic control units ECUs for many different platforms with the same features,” said Jonathan Liao, senior analyst of power semiconductors for IHS. “While over time modern cars have increased in size, suppliers prefer small and interchangeable electronic control units that can fit on various platforms, which help lower overall development costs, and expand the universe of target customers, for an improved return on investment.”As a result of this approach, automotive power ICs are growing faster than discrete solutions. For example, Texas Instruments – the market leader in voltage regulators — controlled 8 percent of voltage regulators used by the automotive industry in 2011 and increased its voltage regulator revenues by 150 percent by the end of 2014. By comparison, Infineon — the leading automotive-market supplier of discrete power solutions — increased their power management revenues, at roughly half of Texas Instruments’ growth rate, during the same time period.