Posted on 22 Sep 2023
Automotive use will remain a strong driving force for growth in the semiconductor industry, particularly with the rising demand for smart electric vehicles, industry participants told an event in China.
According to Wan Lijian, technology director of Shanghai Juyue Inspection Technology, the use of chips in intelligent vehicles has already grown significantly since 2018 and will grow by 26.34% from 2023 to 2025 in smart EVs. Citing data from the China Association of Automobile Manufacturers (CAAM) and consultancy agency EqualOcean, Lijian notes the average number of chips per vehicle is much higher for intelligent EVs than for conventional cars. In 2018, for example, electric cars had around 914 chips compared to 638 chips in ICE cars.
A smart EV is forecast to have an average of 1,640 chips this year, compared to 1,027 in a conventional car. In 2024, EVs are expected to be equipped with 1,843 chips, with the numbers rising to 2,072 chips in 2025. That is an increase of 432 chips per vehicle. ICE cars, meanwhile, could see a growth of 21% or 216 chips from this year to 2025, Kallanish learns at the 23rd China International Industry Fair’s semiconductor forum.
“Compared with consumer-grade and industrial-grade chips, automotive-grade chips have higher requirements in terms of product life expectancy and working environment. As the shipments of smart NEVs increase and there are more and more chips in each vehicle, chip inspection becomes more and more important,” Lijian adds, noting new opportunities in the value chain.
Len Qianqian, analyst at EqualOcean, pointed out that power management integrated circuits (PMICs), the largest segment of analogue chips, have benefited from increasing demand in new EVs and energy storage fields. “Although currently the semiconductor industry is in the downward cycle, PMICs are less likely to be disturbed by this [negative] sentiment due to its widespread application. With demand in the new areas growing and the downstream production replacement accelerating, Chinese PMIC industry remains in strong growth [position],” the analyst points out.
On Wednesday, Sinomcu, another Chinese semiconductor manufacturer, announced it will start a wholly-owned subsidiary to focus on chip demand from vehicles.
Despite the ongoing semiconductor supply chain tensions, many carmakers have reported better supply conditions, easing production constraints around the globe.
Source:Kallanish
