Automotive IC grows fast but overall IC market growth is slowing down.
According to IC Insights, the automotive IC marketshare has steadily increased since 1998 growing from 4.7% of total IC sales that year to 7.4% in 2021. Marketshare gains are forecast to continue for the auto segment, with an 8.5% share expected this year and 9.9% share by the year 2026. At the heart of this growth are the myriad number of new sensors, analog devices, controllers, and optoelectronics being incorporated into most new vehicles. Moreover, the rise of hybrid and all-electric vehicle sales worldwide is adding to this forecast growth. (Laoyaoba, IC Insights)
According to TrendForce research, due to steady weakening of overall demand for consumer electronics, inventory pressure has increased among downstream distributors and brands. Although there are still sporadic shortages of specific components, the curtain has officially fallen on a 2-year wave of shortages in general, and brands have gradually suspended stocking in response to changes in market conditions. However, stable demand for automotive and industrial equipment is key to supporting the ongoing growth of foundry output value. At the same time, since the creation of a marginal amount of new capacity in 2Q22 led to growth in wafer shipments and a price hike for certain wafers, this drove output value among top ten foundries to reach USD33.20B in 2Q22. Quarterly growth fell to 3.9% on a weakening consumer market. (Laoyaoba, TrendForce, TrendForce)