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Trends in SMB Communications
May 05, 2008
Automotive Integrated Circuits Market Booming, Moving East
By Michael Dinan TMCnet Editor Electronics experts are hailing an Austin, Texas-based company for its ability to lead a rapidly growing market in the automotive industry.
An international research and consulting firm today said that the company, Freescale, leads the world in supplying integrated circuits that control safety and electronics features in cars, including air bags, cruise control, collision avoidance, anti-lock brakes, global positioning systems, stereos and phones.
According to a report from Strategy Analytics (News - Alert), Freescale commands 10.3 percent of a market that grew by 9.2 percent in 2007. Freescale has led the market since 1992, according to Chris Webber, Strategy Analytics’ vice president of global automotive practice.
“It's remarkable that any silicon vendor has sustained such a long tenure of automotive market leadership, given the fierce global competition and the industry's rigorous requirements for quality and continuous innovation,” Webber said.
Experts say that the demand for automotive electronics is growing faster than the vehicle market itself, as regulations tighten in emission standards and safety requirements, and as consumers invest in products made specifically for automotive applications, such as DVD players and GPS systems.
According to Strategy Analytics, the global automotive semiconductor market grew by 9.2 percent in 2007, to $19.3 billion.
Executives at Freescale say they expect sales of automotive semiconductor unit to increase at double-digit rates, thanks to the company’s strong hold in the United States and reach in Europe and Asia. China, the world’s second-largest automotive purchaser behind the United States, is expected to overtake first place in about seven years, according to J.D. Power and Associates.
Freescale plans to capture that market by exploring ways that its silicon-based chips can improve consumers’ driving experience, according to Henri Richard, Freescale’s senior vice president and chief sales and marketing officer.
“Freescale continues to reach new heights in automotive innovation, enabling smarter, safer and greener cars that provide the ultimate in driver comfort and convenience,” Richard said.
The company says it’s planning to set up a so-called “joint automotive lab” with China’s Chery Automobile Co. in order to co-develop silicon, software and system-level solutions for use in Chery vehicles for Chinese and export markets.
Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.
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