SemIsrael Blogs
Andrew Faulkner

Andrew Faulkner

Written by Andrew Faulkner and Jim Lipman, Sidense Corp.

“Not your father’s Oldsmobile” was an ad campaign launched in 1988 (at least in the U.S.) to convince buyers that the new oldsmobiles were more advanced and better looking than what their parents might have had. Although, in retrospect, a bad idea (Oldsmobile ceased making cars in 2000), the campaign was an attempt to advertise that automobiles change over time and that this was desirable. The current state of automotive development brings the pace of change to new levels, adding advanced technology to safety, control, communications, efficiency, and comfort.

Cars are evolving into large mobile devices (after all they use a battery, albeit a big one and, of course, they are mobile). The “Electrification” of Automobiles The market for automotive ICs is currently posting a five-year Compound Annual Growth Rate (CAGR) of 6.7%. This is the largest growth of all IC market segments, including the combined smartphone and phablet markets (IC Insights), and represents an IC market size close to $23B and set to grow to $30B by 2019. Currently electronic components (hardware, software, connectors, etc.) make up more than 40% of the production cost of a traditional internal combustion engine car and market experts predict it will hit 50% by 2030. For electric and hybrid-electric cars this reaches 75%! With the average semiconductor value of a mid-range car around $500, automotive has arguably become the Next Big Thing.

originally posted on chipestimate.com, May 17 2016, Read the full blog here