Automotive chips: 100B devices in 2028
Automotive industry to establish an $84 billion market for semiconductor devices in 2028
In its latest report 'Semiconductor Trends in Automotive 2023', Yole forecasts that the automotive market for semiconductor chips will show 11.9 percent CAGR between 2022 and 2028, increasing from $43 billion to $84.3 billion.
Semiconductor chip value per car was $540 in 2022, which will rise to about $912 in 2028. This robust growth will see an 100 billion device market in 2028, according to the market research company.
Key drivers include electrification, requiring new substrates like SiC , advanced technology nodes as small as 16nm/10nm for ADAS components and a growing demand for memory, especially DRAM and computing power for advanced autonomous vehicles.
At the wafer level, Yole Intelligence says wafer shipments will increase from 37.4 million units in 2022 to 50.5 million in 2028. It includes memory, processors, and MCUs leading the way for 12-inch wafers. SiC devices will continue to grow due to EV /HEV adoption, while advanced nodes below 16nm will be driven by ADAS technology.
Key trends in powertrain and electrification include; integration of high-voltage systems; adoption of 800V technology for fast charging, the introduction of SiC in supply chains; the increasing popularity of dedicated BEV platforms; and Si IGBTs are gaining traction to address cost barriers, especially in hybrid solutions with SiC MOSFETs.
Yole says that OEMs are increasingly embracing vertical integration to electrify their operations, with strategies varying by industry segment and region. Power electronics and semiconductors are vital focuses, with some OEMs making direct investments. However, Yole says it sees in general a lack of comprehensive semiconductor strategies among automotive OEMs.
Yole Intelligence has built an analytical model dedicated to automotive semiconductors. The ‘Yole Triple-C Model’ is designed to help OEMs in Car, Chip, and Confine metrics, representing respectively the coverage of semiconductor technologies, the depth of involvement in semiconductor value chain, and the resilience of semiconductor supply chain.