Gartner predicts that the average price of a new car in the US and Germany will exceed $ 50,000 by 2025

According to Gartner, by 2025, chip shortages and trends such as electric traction and self-driving will force half of OEMs in automotive equipment to develop their own chips. This will give them control over product development plans and the supply chain.

“The automotive semiconductor supply chain is complex,” said Gaurav Gupta, vice president of research at Gartner. “In most cases, chip makers have traditionally been third-tier or even fourth-tier suppliers to carmakers, so it usually takes time for them to adapt to changing demand from the automotive market. The lack of transparency in the supply chain has heightened the desire of car OEMs to have more control over semiconductor supply. “

Analysts point out that the current shortage of microcircuits is mainly related to products made with relatively old technology using 200mm wafers, and this makes it difficult to expand production capacity.

Manufacturers are expected to move to the OEM-Foundry-Direct model of in-house chip development. It is not unique to the automotive industry and will become more widespread as the semiconductor market changes. The point is that contract manufacturers provide access to advanced manufacturing processes and cutting-edge intellectual property. These measures facilitate the development of microcircuits.

Gartner also predicts that the average new car sales price in the US and Germany will exceed $ 50,000 by 2025. This will lead to an increase in the volume of repair and modernization of old cars. Analysts expect that the market for new cars will not only not increase, but even contract in the face of rising prices.

“These price increases are likely to reduce overall vehicle sales and increase the market for parts and upgrades as people strive to extend the life of existing vehicles,” said Mike Ramsey, vice president of research at Gartner.