{"id":126728,"date":"2024-05-28T07:53:58","date_gmt":"2024-05-28T06:53:58","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/automotive-semiconductor-industry-positive-outlook.html"},"modified":"2024-05-28T07:53:58","modified_gmt":"2024-05-28T06:53:58","slug":"automotive-semiconductor-industry-sees-long-term-positive-outlook","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2024\/05\/28\/automotive-semiconductor-industry-sees-long-term-positive-outlook\/","title":{"rendered":"Automotive semiconductor industry sees long-term positive outlook"},"content":{"rendered":"

Over the past few years, the automotive semiconductor industry
\nhas navigated a dynamic landscape shaped by a myriad of factors.
\nFrom pandemic-induced semiconductor shortages to regulatory export
\ncontrols and ambitious global investment plans, these elements have
\nprofoundly influenced industry dynamics.<\/p>\n

Amidst this backdrop, the industry has demonstrated resilience
\nand adaptability in response to evolving market conditions and
\ntechnological advancements.<\/p>\n

2023: Market followed the historic growth path<\/h2>\n

The automotive semiconductor market experienced a more-than 25%
\nincrease in revenue in both 2021 and 2022, demonstrating
\nsignificant momentum. Subsequently, in 2023, the market continued
\nits upward trajectory with an increase of 18.1%, reflecting a
\nstrong yet relatively slower pace compared to the gains recorded in
\nthe previous two years. Electrification, digitization, increased
\nadoption of connectivity features, and automated driving all
\ncontributed to this heightened demand for semiconductor chips in
\nthe automotive sector.<\/p>\n

The chip shortage paradoxically also contributed to inflating
\nthe automotive semiconductor sales in 2021 and 2022 because of
\npanic buying. This resulted in high inventory level in the channels
\nwhich have been a subject of concern for the past 18 months, with
\nan anticipated inventory correction expected to eventually take
\nplace. In 2023, there were indications of this impending inventory
\ncorrection within the automotive semiconductor market, particularly
\nevident in regions such as Europe. This correction aimed to realign
\nsurplus inventory levels with actual market demand. From the market
\nshare data it is evident that the impact of the inventory
\ncorrection was greater than anticipated in 2023 already.<\/p>\n

In the mainland Chinese automotive sector, the shift towards
\nelectrification remains a driving force. Within this landscape, the
\npower-discrete segment has notably gained prominence. A key
\ndevelopment is the rise of captive production, with OEMs like BYD
\ndesigning their own semiconductors, thereby bypassing traditional
\nsuppliers such as Infineon. The trend towards self-sufficiency,
\nirrespective of whether an OEM utilizes its own fabrication
\nfacilities or partners with foundries, represents a significant
\nshift in the market dynamics, challenging the established
\nsemiconductor supply chain. This evolution underscores the
\nimportance of OEMs in the semiconductor value chain and the
\npotential impact on merchant suppliers.<\/p>\n

2024: Potential reset year<\/h2>\n

Despite apprehensions surrounding a potential market downturn,
\nthe automotive semiconductor industry is poised to experience what
\nanalysts refer to as a “soft landing” this year. A “soft landing”
\ndescribes a scenario where market adjustments occur gradually,
\npreventing a sudden and severe contraction. Since inventory is not
\nconcentrated in 2024 -but started in 2023 already \u2014 the
\ncorrection is not as brutal and the market is expected to retain a
\npositive momentum reflecting a resilient response to the preceding
\ninventory correction.<\/p>\n

In 2024 the automotive semiconductor industry is projected to
\nhave the lowest forecast in the past four years, at less than 4%.
\nNext to the inventory burning, several additional factors
\ncontribute to this modest market expansion, including:<\/p>\n