IC Insights reports that automotive semiconductor market will have a great 2011.According to its latest report, obtained by Tekedia, the average value of semiconductor contents in automotive will grow by 15% from 2010. In reality, it is still a small contributor to a new car value. At $350, semiconductor content is just a marginal cost for new cars that start in the range of around $16,000.
Semiconductor content per vehicle varies based on make and model, trim level, environmental concerns, and regional government regulations. But, in 2011, the trickle-down effect of technology in automobiles is having a greater impact than originally anticipated. Sophisticated electronic systems, that were the exclusive domain of luxury-class vehicles a few years ago, have become more commonplace in mid-range and lower-priced automobiles. Consequently, in the mid-year update to its 2011 IC Market Drivers report, IC Insights has raised its forecast for average semiconductor content per automobile to $350 in 2011. This represents a 15% increase from the $305 average in 2010
Increasingly, microchips are powering many devices in the car. Most cars are going electronic with locks, keys, and previous mechanical functions now electronically done. From audio to sensors for car airbags to rollover, semiconductor has found a new growth area in automobiles.
Also, due to regulations, the barrier of entry remains high when compared to consumer electronics. That means the major players in this sector will continue to reap benefits even as regulations set new standards that will actually see more semiconductor products in cars.
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photo credit/IC Insights