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Automotive electronics chipmakers predict future automotive innovation will come from automotive electronics -
"The rapid growth of the automobile manufacturing industry in China will greatly stimulate the development of the automotive electronics industry. At the same time, as the design and manufacture of automotive machinery is near perfection, the space for continued vehicle improvement will be focused on the integration of automotive and electronics. From automotive electronics.†Mr. Giuseppe Izzo, director of automotive electronics at STMicroelectronics (ST) Asia Pacific, is one of the world’s top three automotive electronics chip manufacturers. He was recently held at the “China International Automotive Electronics and Technology Exhibition†in Beijing. The views expressed in the Automotive Electronics Industry Forum.
Market maintains rapid growth
According to statistics, the total value of the global automotive electronics market in 2003 was 13 billion U.S. dollars, of which Europe accounted for 36%, North America 32%, and the Asia Pacific region only accounted for 7-10% (and most of them were concentrated in lower-level car audio). It is estimated that from 2003 to 2008, the global automotive semiconductor market will maintain rapid growth at a compound annual growth rate of 7%-10%.
The automotive market, characterized by extremely stringent cost performance requirements, is presenting a special challenge to the semiconductor industry – price.
Large-scale manufacturing and fierce competition make the automobile manufacturing industry attach great importance to the price, but the automobile environment is particularly bad - the distance from the engine will cause the electronic device to experience a temperature change from -40°C to +55°C; the high-energy, battery that erupts instantaneously The reverse polarity and severe vibrations may destroy the solder joints of electronic components. With the technical simplicity of roadside repair shops, even small electronic faults will cause great inconvenience to owners.
Therefore, in fact, the automotive market demand for semiconductors is: quality and reliability to military grade; cheap, full range; increasing complexity. To succeed in the market, automotive semiconductors must meet three requirements: advanced technologies and a wide range of products; persistently pursuing high quality; and comprehensive understanding of the automotive market.
Because electronic technology is widely used in the automotive market, there is no so-called special automotive electronics technology. Semiconductor manufacturers must be able to provide a full range of digital, analog/mixed-signal, power, and memory technologies that must be manufactured in large quantities. Very cost-competitive, high-quality products (with a typical defect rate of less than one in a million).
Within a wide range of technologies, certain combinations of technologies have a particularly important significance in the automotive market. For example, in semiconductor products, the strong growth of automotive applications means that the use of various semiconductor components has increased. In particular, electromechanical solutions have improved the reliability and diagnostics of the assembly, as well as the economics of replacement parts.
Although the conditions and requirements of the automotive market are extremely demanding, it is still a very rewarding market for companies that can achieve and maintain market leadership.
Multinational companies join hands to enter China
According to statistics, out of the total value of the $13 billion global automotive electronics market in 2003, the world’s top 10 manufacturers such as Motorola, Intel, Philips, Bosch, Toshiba, Texas Instruments, and ST, accounted for almost 70% of the total. Among them, ST is one of the world's largest suppliers of automotive electronic components. Its market share last year exceeded 8%, with global sales of US$8.76 billion and automotive electronics products accounted for 15% of total sales.
Currently, ST has formed strategic alliances with world-class component manufacturers and auto makers. Its major customers include Bosch, Delphi, Westone, Denso, Temic, Siemens VDO, Valeo, Marelli, and Hella. And many other auto parts manufacturers. Combining the spare parts made by these companies will find that from BMW to Toyota, from Passat to Nissan, from Volkswagen to Fiat and Ford, it is not difficult to find ST's products in almost all automobiles manufactured in the world. Play an important role.
Due to the rapid expansion of demand in the Chinese automotive market, these well-known automobile manufacturers and parts manufacturers are actively expanding their business in China, and ST also maintains close cooperation with them to provide the most advanced, most comprehensive and comprehensive technology and products. service. With the rapid development of China's auto industry, auto electronics has now become ST's new business growth point in China.
According to an independent market research firm iSupply, ST was the third-largest semiconductor supplier in the automotive market in 2003. Both Bosch and Fiat/Malelli are strategic partners. Other long-term partners include the United States and Japan. Large car manufacturers.
China is becoming an attractive market
With the rapid development of China's future automotive market and the rapid increase in the value of automotive electronics, China's automotive electronics industry will have a huge economic scale effect.
According to the estimation of China Association of Automobile Manufacturers, the demand for cars in China will reach 5.5 million in 2005, the sales volume in the auto market will reach 1,000 billion yuan, and the size of the automotive electronics market will be approximately 250 billion to 300 billion yuan. The proportion of automotive electronic products in the cost of automobiles will further increase, especially the proportion in cars will reach 30%-40%.
At present, the Chinese market is playing an increasingly important role in the ST strategy. After several years of development, ST has gradually established a complete industrial chain in China. From the year 2000, ST's market share has exceeded 5 percent for 5 consecutive years in the entire Chinese market. Once exceeded $1.5 billion.
It is understood that ST is the first world-class semiconductor manufacturer to invest and build factories in China. As of December of last year, ST's investment in Shenzhen Serie Microelectronics Co., Ltd. has totaled 356 million U.S. dollars. The plant is currently one of the largest packaging and testing plants in China and has the most advanced production and testing technology in the world. In addition, ST also established the earliest IC design center in Shenzhen.
According to reports, in terms of automotive electronics, ST plans to set up a special automotive electronics technology center in Shanghai to provide technical support services for the Chinese market. The center will also cooperate with ST's various technical centers in Europe, the United States and Japan.
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