Smart Cars

Driving Semis

February 14, 2008 – 8:14 am

The worldwide automotive market for ics and semiconductors is on the brink of a massive expansion, according to a report from research group Forward Concepts.

The report, Automotive Chips 2000, point outs that the basic design of cars is about to dramatically change. For example, in future cars, such as the Bentley Hunaudieres, the hydraulic system for brakes will disappear, to be replaced by electromechanical brakes controlled through a drive-by-wire system.

Among its finds, the report predicts that the global demand for vehicle electronics systems will climb from $46bn in 1998 to nearly $75bn in 2005. Semiconductor content in vehicle systems will grow from $7.9bn to nearly $18.9bn in the same period. Forward Concepts predicts that the total semiconductor content per vehicle will grow at an annual rate of 8.8% from 1998 through to 2005, increasing from $175 to $296. The semiconductor share of total vehicle electronics systems will grow by nearly 50% from 1999 to 2005.

Semiconductors in multimedia, safety/security and body electronics applications will grow at an 11 or 12% rate from 1998 through 2005 while engine and drive train electronics growth rate will be about 5%. By 2005, semiconductors in body electronics (40% market share) will surpass semiconductors in engine and drive train electronics (35% market share).