Analysts at IC Insights analyzed the dynamics of the distribution of the microcircuit market by application area from 1998 to 2029, and found that over the years, two segments have increased. At the beginning of the period, microcircuits for telecommunication equipment accounted for 18.5% of deliveries, and at the end of the period – 35.0%. The segment of microcircuits for automotive electronics at the beginning of the period was 4.7%, and at the end – 7.5%. For comparison: the share of microcircuits for computers in the total supply volume over the years decreased from 55.6% to 39.7%. The picture is clearly shown in the diagram:
According to analysts, the main reason for this redistribution is the growth in demand for smartphones. They associate a decrease in the share of automotive microcircuits from 8.7% in 2019 to 7.5% in 2020 with a pandemic.
IC Insights experts explain that the production of automotive microcircuits, as a rule, does not require advanced technologies, but more stringent requirements are imposed on these products in terms of reliability. In addition, it is characterized by an extended life cycle, that is, manufacturers commit themselves to supplying the same models over a long period. Another feature is stable prices. Even with the current shortage of automotive chips, the average selling price in this segment has remained almost unchanged.
Given the small size of the automotive segment, even the much talked-about supply growth that has been much talked about lately will not lead to significant growth in the entire chip market this year. In the first quarter, shipments of automotive microcircuits increased by 23% compared to the same period last year, which is in line with the growth rate of the microcircuit market as a whole.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
