What is the opportunity for domestic manufacturers to compete for vehicle ICs?

In recent years, with the improvement of automotive performance, safety, convenience and comfort, the high-tech elements of automotive electronic systems are gradually increasing. While adding high-tech elements, it inadvertently set off another field of "knife and sword." However, this time the protagonist is no longer a well-known car company, but replaced by a car IC company. Learn together!

In the past few years, when most people's eyes are focused on new energy vehicles and unmanned driving, the global automotive IC market has quietly experienced extraordinary changes.

From the 11.5% growth in 2014 to the 2.5% decline in 2015 and the 10.8% growth in 2016, the global automotive IC market is growing at a compound annual growth rate of 11%.

This year, with the increase in prices of DRAM, NAND Flash ASP and automotive-specific logic devices, as well as the continuous development, maturity and application of semi-automobile and full-automobile technologies, the automotive IC market has become increasingly strong, ushered in a new round of outbreaks. According to IC Insights, a well-known research organization, it is likely to achieve 22.4% growth this year.

The reason why the automotive IC industry is so hot is that the arrival of the Internet era has given the car more functions, such as: driverless, active parking, security, etc., and these functions of convergence and automation are It relies on high-performance chips to achieve. In addition, compared with the computer industry that has been killed in a red sea, the design of automotive IC products is undoubtedly more stable and the production cycle is longer.

Moreover, the current market size of automotive ICs is not large, but according to the growth rate, its growth rate is the fastest. Especially in the field of new energy vehicles, automotive electronics accounts for more than 60% of the cost. In the future, with the popularity of Advanced Driver Assistance Systems (ADAS), cars are likely to become the third largest IC market after communications and computers.

Intel Qualcomm rushed to enter the battle

Today, more and more automakers are struggling to break away from the stereotypes of traditional machine builders, with a shift in focus on energy efficiency and intelligence for a higher level of safety and a better overall driving experience. Therefore, there is an increasing demand for high-performance semiconductor components in various automotive applications.

Breakthroughs in cutting-edge technologies such as ADAS, car networking and electric energy have also brought further room for growth in the automotive electronics market segment. Therefore, when the traditional IC application field grows weaker, the automotive industry has increased the demand for automotive ICs.

Especially for driverless cars, the components that must be programmed must be embedded in the components to be reliably controlled. With the upgrade of the entire automobile industry chain, various types of sensors, navigation chips, and on-board computers, which are closely related to autonomous driving, require more and more chips. In the future, there will undoubtedly be more room for improvement in the integration of IT technologies such as information and communication.

Therefore, in recent years, in addition to IT technology companies, traditional car manufacturers targeting the smart car / driverless car market, traditional car manufacturers chip suppliers NXP, Infineon, STMicroelectronics, Renesas are also actively involved. Even semiconductor companies such as Intel, Qualcomm, and NVIDIA, which are good at computing and processing power, are competing for mergers and acquisitions.

When European and American manufacturers are using their own skills to stabilize their leading position in the country, Japanese and Korean companies have also used their geographical advantages to enter China. At present, LG is in Nanjing, Panasonic is in Dalian, and Samsung has invested in building a factory in Xi'an to compete for automobile affairs. Obviously, from the perspective of the actions of IC manufacturers in various countries, the smart/unmanned vehicle field has become the focus of its competition.

All along, due to the high threshold of automotive IC technology, China started late, has long been the world of foreign industry giants, and outsiders rarely have the opportunity to enter. The lack of professional talents and other comprehensive factors have further contributed to the current situation of China's automotive ICs that have always relied on imports.

However, in recent years, the Chinese government is vigorously encouraging independent research and development of chips. For example, the "China Made 2025" favorable policy, the establishment of the integrated circuit industry fund, the "Chinese core" and other concepts, as well as the strong demand for chip import substitution, have all released a strong signal to the industry. The wave of this round of industrial change has undoubtedly provided a good opportunity for Chinese companies.

At present, domestic manufacturer HiSilicon has won the bid for Audi and Mercedes-Benz vehicle module projects, and its strength in the automotive IC field has been proved. Since its establishment three years ago, Datang NXP has been holding high the banner of “Based on independent research and development”, keeping up with the market and customer needs, and contributing to the growing new energy vehicle market in China in the automotive front-loading market. .

With the increasingly sophisticated technology of local automotive ICs, some Chinese practitioners have begun to enter the application market with low quality and reliability requirements, including parking assistance and telecom entertainment systems in advanced driver assistance systems.

In the future, with the joint efforts of industry peers, through cross-border cooperation, experience sharing, and core technology innovation, China's “curve overtaking” in the field of automotive ICs is likely to become a reality.

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