August 16, 2006 – Automotive semiconductor revenues are seen growing nearly 10% in 2006 to $18 billion, and will drive up to nearly $29 billion by 2013 thanks to demand due to planned enhancements to vehicle performance, features, and safety, according to data from Strategy Analytics Inc.

The increasing dependence on electronic systems and sophisticated control functionality will keep the auto semiconductor sector growing well above production expansion levels of the cars themselves — 8.2% CAGR from 2005-2010, vs. just 3.6% for global light vehicles during the same period, the firm forecasts.

Next-generation powertrain, safety control sophistication, and convergence in “infotainment” will require higher-performance processor and memory capabilities, while cost and miniaturization issues in areas such as tire pressure monitoring will boost demand for application specific devices, according to Chris Webber, VP of the firm’s automotive practice. Sensors and camera ICs will be increasingly be used for safety applications such as lane departure warning systems, while power semi suppliers can expect growing business due to actuators in comfort and convenience systems such as climate control and seating, plus new applications such as active steering and adaptive headlamp control systems.

Revenue projections for automotive semiconductors, by segment
Semiconductor application…………CY06 sales (US $M)

Powertrain…………………………………….4650
Chassis…………………………………………2695
Security………………………………………….958
Safety……………………………………………2546
Body……………………………………………..3831
Driver info……………………………………..1607
Audio……………………………………………1732
TOTAL……………………………………….18,019

Source: Strategy Analytics Inc.