© IC Insights Components | August 18, 2021
Automotive MCU sales to surge 23% in 2021 despite shortages
32-bit designs are expected to generate almost 77% of automotive microcontroller revenues this year, followed by 18% from 16-bit and 6% from 8-bit, says market researcher IC Insights.
The huge market for automotive microcontrollers—which accounted for about 40% of total MCU sales over the last decade—has been on an uneven ride in the past several years. After climbing 12% in 2017, worldwide automotive MCU sales slowed to a crawl in 2018, rising just 1%. A borderline global recession stalled demand for new vehicles in 2019, and then came the outbreak of the Covid-19 virus pandemic, which wrecked the worldwide economy in 2020. Once the worst of the coronavirus-driven downturn was over in the summer of 2020, automotive and other end-use markets stabilized and demand returned by the end of the year. But ramping up deliveries of MCUs and other semiconductors produced on decades-old 200mm wafer fab lines with less-than leading-edge processes, lagged behind the rebound-driven upturn. Despite some ongoing shortages of microcontrollers and automakers having to temporarily close assembly lines this year, automotive MCU sales are forecast to surge 23% in the economic recovery of 2021 to a record-high level of USD 7.6 billion, followed by strong increases of 14% in 2022 and 16% in 2023. Despite some setbacks in the first half of 2021—such as wafer fabs being shut down by massive power outages in Texas during a historic arctic cold wave in February and heavy damage by fire to a few wafer processing plants in Japan, IC makers say they are ramping up automotive MCU production. For instance, foundry giant Taiwan Semiconductor Manufacturing Company (TSMC) said in July 2021 that it was on pace to increase its 3Q21 wafer fab capacity by 60% for automotive microcontrollers compared to production outputs a year earlier and 30% higher than pre-pandemic levels. More than three fourths of automotive MCU sales come from 32-bit microcontroller designs, with about $5.8 billion expected this year followed by 16-bit revenues forecast at USD 1.3 billion and 8-bit at USD 441 million in 2021. Higher average selling prices for 32-bit MCUs are helping to push up sales volumes this year partly because of tight supplies in the market. The mid-year forecast shows the ASP for all 32-bit MCUs rising 13% in 2021 to USD 0.72 after dropping by a compound annual growth rate (CAGR) of -4.4% between 2015 and 2020, the report continues. Automotive infotainment (entertainment and information systems that retrieve digital maps, identify locations, and access data from the Internet and satellite transmissions) is expyected to account for 10% of automotive MCU sales in 2021 (about USD 780 million) while microcontrollers used in the other parts of vehicles (engine controls, power train, brakes, steering, power windows, battery management, etc.) are forecast to represent 90% of the revenues this year ($6.8 billion). Infotainment MCU sales are forecast to climb 59% in 2021 from USD 495 million in 2020, while the rest of auto MCU revenues are expected to rise by 20% from about USD 5.7 billion last year.
Nanya breaks ground on new fab in Taiwan Nanya Technology Corporation has broken ground on its new semiconductor fab in New Taipei City’s Nanlin Technology Park. Once completed, the NTD 300 billion (EUR 9.6 billion) investment will result in an advanced fab with a double-deck cleanroom.
First tool arrive at GlobalFoundries new Singapore fab One year after breaking ground, GlobalFoundries can celebrate a significant milestone on the path to expand its semiconductor manufacturing capacity in Singapore. The first tool has been moved into the company's new facility on its Singapore campus.
Sponsored content by RUTRONIK Elektronische Bauelemente GmbHThe Next Level in Advanced Robotics The key to intelligent, self-controlled industrial and service processes is advanced robotics. Progress in this Future Market relies mainly on better performing electronic elements that make robots more adaptable, perceptive, communicative and mobile, and easier to integrate into processes.
Sivers Semiconductors completes the integration of MixComm Swedish Sivers Semiconductors says it has completed the integration of MixComm, creating a challenger in 5G, SATCOM and radar.
Inventronics to acquire ams Osram digital systems business Inventronics has entered into an agreement to acquire the Digital Systems business in Europe and Asia from ams Osram, a global leader in optical solutions.
Allied Motion Technologies acquires Airex Allied Motion Technologies, a designer and manufacturer of precision and specialty controlled motion products, has acquired Airex, LLC, a privately-owned company providing high precision electromagnetic components and solutions.
Arrow opens new distribution centre in the Netherlands Arrow Electronics has opened a new primary distribution centre (PDC) in Venlo, the Netherlands. The PDC will function as a key hub serving all customers of Arrow’s electronics components business in Europe.
Smith adds 30,000 square feet of space in Houston The distributor of electronic components has officially opened its new global services hub in Houston, Texas. The new location adds 30,000 square feet of space for the company’s services.
Samsung invests in Israeli AI systems & semiconductor company Samsung Ventures has made an investment in NeuReality, an Israeli AI systems and semiconductor company.
Swedes develop new method for manufacturing semiconductor components AlixLabs from Lund, Sweden, has developed a new method for manufacturing semiconductor components with a high degree of packing, eliminating several steps in the manufacturing process - Atomic Layer Etch Pitch Splitting (APS).
Kinetic closes asset purchase agreement with Gain Semiconductor Analog and mixed-signal semiconductor company, Kinetic Technologies, has completed the acquisition of certain assets of Gain Semiconductor Incorporated.
Socionext relocation of its US HQ to Milpitas Fabless SoC supplier, Socionext America Inc. (SNA), has relocated its US headquarters to a34,000 square foot single floor building in the City of Milpitas.
TF-AMD expands with new manufacturing site in Malaysia TF-AMD Microelectronics plans to expand its manufacturing facility in Penang with the construction of a second site at Batu Kawan Industrial Park, Penang. A move set to create more than 3,000 new jobs.
Ericsson boosts distribution center in Malaysia Swedish telecom company, Ericsson, has commissioned a new facility at the Kuala Lumpur International Airport (KLIA) that will expand its regional distribution capacity and role of Malaysia in the company.
Applied Materials acquires of Finland-based Picosun Applied Materials has acquired Finnish atomic layer deposition (ALD) technology specialist Picosun Oy.
Melexis adds new manufacturing and R&D space in Bulgarian In an update on LinkedIn the company states that it has officially opened ints new “high-tech” building in Sofia, Bulgaria. Melexis says that this new facility will contribute to Bulgaria's presence in areas such as microelectronic, automotive, and innovation.
Arduino finds backing among giants Open-source company, Arduino, plans to expand its portfolio of hardware, software, connectivity and developer tools for professionals. To reach its goals the company launched a Series B financing round, raising USD 32 million from the likes of Bosch, Renesas and ARM.
Farnell expands Toshiba portfolio to support design engineers The global distributor says that it has strengthened its global partnership with Toshiba Electronics Europe GmbH (Toshiba), resulting in a significant product line expansion and increased stock holding.
SK hynix pick Lam solution to enhance DRAM production SK hynix has selected Lam Research's dry resist fabrication technology as a development tool for two key process steps in the production of advanced DRAM chips.
Altair expands and acquires Concept Engineering Computational science and artificial intelligence company, Altair, has acquired Concept Engineering, a provider of electronic system visualization software.
Infineon liquidating its entity in Russia One hundred days after the start of the war, Infineon Technologies reaffirms its solidarity with the people of Ukraine. The company states that it made the decision to liquidate its entity in Russia in March already, which is currently being executed.
Newport Wafer Fab deal called-in for national security assessment The acquisition of the UK’s UK's biggest chip plant – Newport Wafer Fab – has been called in for a full national security assessment.
Soitec reports record revenues for 2022 The French designer and manufacturer of semiconductor materials report that its revenue for the full fiscal year of 2022 reached a new all-time record of EUR 863 million.
Atlas Copco acquires provider of semiconductor subfab solutions Swedish Atlas Copco has acquired Qolibri Inc., a company that provides proprietary technologies for semiconductor subfab operations.
Micron plans recruitment spree in Taiwan The US DRAM specialist is reportedly planning to add some 2,000 employees and set up a research and development corridor in Taiwan.
TE Connectivity acquires Kemtron TE advances its capabilities in electromagnetic interference and radio frequency interference shielding via the acquisition of UK-based Kemtron, including its French subsidiary Kemtron Sarl.
LG Innotek to acquire former LG solar factory During an LG Innotek board meeting it was decided that the company would take over the LG Electronics A3 factory in Gumi, South Korea.Load more news