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peter.clarke
elctrnx_lyf
I feel India as a growing economy and all the top car manufacturers like Nissan ...
Automotive chip market set to grow 23.5% in 2010, says Gartner
Peter Clarke
7/5/2010 12:42 PM EDT
After a poor 1Q09 automotive semiconductor revenue has demonstrated four consecutive quarters of growth. Inventories have remained stable in 1Q10, after the depletion that started at the end of 2008, Gartner said.
Overall, growth in the automotive semiconductor market is linked to growth in light-vehicle production, and this is forecast to grow 13.5 percent in 2010 to 67 million units, after a decline of 11.8 percent in 2009.
The worst aspects of the recessionary downturn were avoided by government-funded scrapage schemes and as many of those came to an end there was also sales boost and this momentum meant that 1Q10 saw quarter-over-quarter growth of 6.5 percent, making it the fourth quarter in a row of positive growth.
Infineon Technologies remained the leading supplier of automotive semiconductors during 1Q10, with associated revenue of $460.7 million. It was followed by NEC Electronics and Freescale Semiconductor, in second and third place, with revenue of $405 million and $394 million, respectively.
The most-significant impact of this recession was a change in the vehicle mix, with sales of smaller cars benefiting from the different incentives, and a change in the regional mix, with China accounting for more than 20 percent of global production in 2009.
Related links and articles:
Autoelectronics market to reach $210 billion in 2014, says analyst
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phoenixdave
7/5/2010 4:37 PM EDT
"The automotive semiconductor market will grow 23.5 percent in 2010 to $19.334 billion, after declining 21.7 percent in 2009"..... This would truly be am amazing turn-around in a very short period of time, if it comes true. While the auto industry is still very prone to a drop in consumer spending due to many different fears, this is certainly an amazing number if it were to come true. I wonder how much of this is related to rebuilding inventory following the government-backed incentives and how much is related to an increase in sales following the expiration of the incentives.
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peter.clarke
7/12/2010 6:38 AM EDT
Dave,
Government scrappage schemes not only boosted sales during the recessionary downward spike, but also as people brought purchases forward to beat the cut-off dates for such schemes. The result may be that growth is somewhat surpressed from the long-term trend over the next couple of years.
Nonetheless with increasing electronic content automotive electronics will grow faster than the automobile market.
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Baolt
7/6/2010 6:18 AM EDT
For 2010, Global semiconductor sales hits the records, correspondingly automotive market grows also. However this is not due to high sales records of giant car brands in US nor in EU. Indeed we have heritage of GM and consequence legs in EU. At Japan situation for is well known not shiny either. However the pull locomotive is discovered Chinese & Korean market. AustriaSemi, NXP are few examples of these companies who got very strong at this market in short time, and kept their records growing. This is indeed the power behind that autosemi growth. I surmise not only 23.5 but around 25 is still feasible, if supply and inventory level issues solved swiftly within Q3.
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goafrit
7/6/2010 6:50 AM EDT
Gartner is right here. I think the automotive market is a growth business. As more regulations take effect in Asia and Eastern Europe, we are going to see more growth. The challenge is that not all the firms will benefit. Industry leaders will continue to dominate this market and others may actually lose market share. This analysis also correlates with the general industry semiconductor forecast especially in Asia/China.
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GREAT-Terry
7/6/2010 12:27 PM EDT
Although the whole market is growing and people are all talking about the emerging market from Asia, especially China, I wonder if the profit of the semiconductor sector in this market is good or healthy enough. Most of the cars built in China are still very low cost (4 wheels plus a sofa!) so how much will people really pay for the electronics? No matter much the car is, a car ultimately has to be very reliable as it is a killing machine on the road regardless of its price. Reliability sometimes means higher semiconductor cost. But if the price of a car keeps on hanging around such cheap level, how much money can go into the building of a reliable electronic system?
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prabhakar_deosthali
7/7/2010 7:26 AM EDT
With the consumer(even in Asia) becoming more and more knowledgeable and also aware of the global brands and their product offerings, I don't think that the car manufacturers in Asia can overlook the safety and reliability aspects to offer cheaper models. The consumer and the government regulations will ensure this.
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Baolt
7/7/2010 7:46 AM EDT
Being sceptical for chinese products is ok, however underestimating their power is big mistake, at this point i dont agree with Terry. If we go back in time not so far to beginning of Japanese boom days, Toyota, Mazda was some of the terrible sofas
to really crazy prices, however today Japanese car co. situation is obvious. Nevertheless Hyundai Genesis won the best car of the year for 2009 at US. Its a good indicator what point they have reached.
Thats correct point that chip cars doesnt include many electronic components besides all in all they have some chips inside, considering the volume we can get the point why they emerge swiftly. Future for AutoSemi is quite bright, emerging markets are promising and also shouldnt forget the leading factor of electrical/hybrid cars which needs lots of electronics.
This article would be good to read for fellows interested further " http://www.ecnmag.com/News/2010/01/Automotive-Semiconductor/Market-Recovery/ "
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elctrnx_lyf
7/7/2010 1:00 PM EDT
I feel India as a growing economy and all the top car manufacturers like Nissan of Japan, Volkswagen of Germany and Ford of USA have established own manufacturing plants in India. All these companies inspired by the Nano from Tata which costs US$2000. Even though Nano wasn't an instant hit, it provided all the global brands to make the small cars like Ford Figo, Nissan Micra and Volkswagen polo. These cars priced about US$12000 they are all huge hits. All these cars having with latest electronics included in them could definitely will improve the growth of Automotive Semiconductors in huge way !!!
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