Introduction: Market Overview

The global automotive semiconductor market is experiencing rapid growth, reaching $68 billion in 2024, with Infineon Technologies leading the industry. Driven by electrification, AI, and advanced driver-assistance systems (ADAS), the market is projected to grow at a 12% CAGR from 2024 to 2030, reaching $132 billion by 2030.

The average semiconductor content per vehicle is expected to rise from 824 units in 2024 to 1,158 units in 2030, while the per-vehicle semiconductor cost will increase from $759 to $1,332.

Key Growth Drivers

Yole Group identifies three main factors driving this growth:

1. Electrification: Widespread adoption of power electronics, particularly SiC MOSFETs and WBG semiconductors, enhances EV efficiency and fast-charging capabilities.

2. Safety Regulations: Updates in Euro NCAP 2026, US AEB, and China C-NCAP standards add cameras, radars, and domain controllers even in entry-level vehicles.

3. E/E Architecture Evolution: Transition to centralized systems and 48V power architectures increases demand for advanced automotive MCUs and PMICs.

Vehicle trends:

*  Battery Electric Vehicles (BEV) growth is slowing in major markets.

*  Dual-motor Plug-in Hybrid Electric Vehicles (PHEV) are expanding rapidly, particularly from China, with an average growth rate of 19%, compared to BEV’s 14%.

Technological trends:

*  Falling SiC MOSFET prices expand their adoption in BEV and PHEV inverters for fast charging.

*  Artificial Intelligence (AI) is increasingly applied in ADAS, cockpit electronics, VLA models, development, manufacturing, marketing, and after-sales services.

Top 5 Automotive Semiconductor Companies (2024)

The top five companies account for approximately 50% of the market, while emerging Chinese companies such as Horizon Robotics, SiEngine, Black Sesame, BYD Semiconductor, and StarPower are rapidly expanding in ADAS, cockpit electronics, and SiC/IGBT components.

China Automotive Semiconductor Trends

* Localization: China aims to increase automotive component localization to 25% by 2025.

* Vertical integration: Companies like NIO use TSMC 5nm for 1000 TOPS domain controllers, and BYD integrates MCUs and SiC MOSFETs with battery packs.

* Manufacturing capacity: SMIC is building 4 × 12-inch fabs; 28/40nm nodes process ~100,000 wafers per month.

* Advanced process competition: 16nm and below are led by TSMC N5A and Samsung SF5A, supporting high-end SoCs like NVIDIA Thor, Qualcomm Snapdragon Ride, Mobileye EyeQ7.

Global Market Landscape

* US companies hold 36% of the market, focusing on analog, memory, and high-end SoCs, driving AI adoption in ADAS, autonomous driving, and cockpit computing.

* Japanese companies such as Renesas, ROHM, and Denso remain strong in MCUs, sensors, and SiC power devices, with growth in SiC MOSFETs for EV inverters.

Conclusion

The automotive semiconductor market is transforming rapidly due to electrification, AI, and advanced E/E architectures. While Infineon, NXP, and STMicroelectronics lead today, emerging Chinese manufacturers and AI-driven innovations will reshape the competitive landscape.

Opportunities include:

* Expanding SiC MOSFET and WBG semiconductor applications

* Integrating AI into ADAS and cockpit systems

* Strengthening localization and vertical integration strategies, particularly in China