Consumer electronics demand strains automotive semiconductor supply, impacting EV growth. US-China trade tensions further affect prices.
In an era of global warming, the automotive industry has had more than its fair share of negative press. The industry has made sustainable mobility a top-most priority in the 21st century. A compelling solution is electric vehicles (EVs), that necessitate electronic components such as automotive semiconductors.
Global Regulation Norms Dictate Direction of the Automotive Semiconductor Market
A preference for EVs and adoption of the technology in internal combustion engine (ICE) vehicles is responsible for the growth witnessed in the automotive semiconductor market. Government norms such as Euro 6, CAFÉ, and the Clean Air Act should hasten the shift away from ICE vehicles. Semiconductors play a vital role in making vehicles more fuel-efficient. Increasing personal mobility in emerging economies has led to an increase in car crash mortality rates, raising safety concerns. This has contributed to advanced driver assist systems (ADAS) gaining popularity. Automotive semiconductors have become the focal point as they help carmakers differentiate themselves in a cutthroat market by enhancing vehicle efficiency, performance, and safety.
For more Insights into the Market, Get a Sample of this Report:
https://www.fairfieldmarketresearch.com/report/automotive-semiconductor-market/request-sample
Huge Demand for Consumer Electronics Reduced Supply for Automotive Semiconductors
The COVID-19 pandemic led to a domino-like effect in the automotive industry and global supply chains ground to a halt. Consumers have paused purchases of vehicles due to long-term economic uncertainty and job losses. Automakers have had a resultant shortage of funds and are unable to invest in R&D. The transport bans and lockdowns led to a collapse of the Just in Time strategy, resulting in idling or temporary plant closures. Work from home directives meant that purchases of consumer electronic devices skyrocketed – all of which require semiconductors. These factors lead to longer lead times, posing major challenges for growth in the automotive semiconductor market.
US- China Trade War Had Cascading Effect on Prices of Automotive Semiconductors
China, Japan, and Korea have a virtual monopoly on the manufacture of automotive semiconductors. Rising EV penetration because of favourable government policy along with consumer preference for ‘greener options’ ensures a bright future for all stakeholders in the APAC automotive semiconductor market. The US- China trade war has led to tariff fluctuations and has raised the cost of imported components in western markets by double-digits. The trade war is anticipated to be a lose-lose situation for emerging and developed economies and will negatively impact the automotive semiconductor market.
Do You Have Any Query Or Specific Requirement? Request Customization of Report: https://www.fairfieldmarketresearch.com/report/automotive-semiconductor-market/request-customization
Huge Investments Underway in Electric and Hybrid Technology in Automotive Industry
Automakers have invested billions of dollars in automotive semiconductor technology to aid electrification efforts. Advanced driver assist features require automotive semiconductors in passenger cars. Electric and hybrid drivetrains should witness greater incorporation of electronic circuits during the assessment period. Both electric and hybrid electric vehicles have automotive semiconductors as a core technology, propelling demand in the EV segment of the automotive semiconductor market.
The automotive semiconductor market is characterized by intense competition amongst the companies involved. Technology companies are seeking alliances with automakers, universities, and even researchers to up the pace of innovation. A few companies in the automotive semiconductor market are Intel Corporation, ASE Technology Holding Co. Ltd. (ASX), NXP Semiconductors, Samsung Semiconductors, NVIDIA Corporation, Broadcom Inc. (AVGO), Texas Instruments Inc. (TXN), Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Analog Devices Inc., Toshiba Corporation, Infineon Technologies AG, Renesas Electronics Corporation, Robert Bosch GmbH, Qualcomm Inc. (QCOM), and Micron Technology Inc.
About Us
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA +1 (844) 3829746 (Toll-free)
Web: https://www.fairfieldmarketresearch.com/
Email: sales@fairfieldmarketresearch.com
Follow Us: LinkedIn
The article discusses the impact of consumer electronics demand on the automotive semiconductor market.
The trade war increases semiconductor prices due to tariff fluctuations.
They enhance vehicle efficiency, performance, and safety, crucial for EVs and ADAS.
Explore more articles in the Research Reports category
