Semiconductor vendors seeing vehicle sales boom

Old car, Wikimedia CommonsSemiconductors used in automotive systems will be worth $6.2 billion in China this year, a research company said today.

While sales of cars in China aren’t as buoyant as they were, better performing semiconductors will be needed now and in the future, according to US research company IHS.

Revenues from semiconductors in the motor business amounted to $5.6 billion in 2014 and will grow by nearly 11 percent this year.

Alex Liu, a semiconductors analyst for IHS, said: “There is increasing auto industry focus on power efficiency and green energy, as well as the pursuit of greater safety and a better overall driving experience. For that reason, more and higher performance semiconductors will be required in automotive applications, like direct injection systems in power engines, advanced driver assistance systems and safety applications.”

The leader in 2014 was Freescale, with 15.5 percent of the market, followed by ST Microelectronics (14%) and NXP Semiconductors (12%).

Home grown vendors are strong in the so-called “infotainment” sector, said IHS. Nevertheless the Chinese government is determined to rely less and less on overseas vendors and is plunging billions into developing its own semiconductor industry.