Automotive IC Market Predicated to Grow at 18.5% in 2018

admin — Thu, 28 Jun 2018 01:44:15 +0000

Considering system monitoring and control, safety, ADAS, convenience and the growth of autonomous driving, in 2018, the IC market is expected to grow at a rate of 18.5%.

Consumer demand and government requirements for electronic systems lift up vehicle performance and increase comfort and convenience. Giving warning, identifying problems and taking corrective actions will keep drivers safe and alert. The growth of systems and the increase in the price of memory components are expected to increase the auto IC market by 18.5% this year, which will hit a record high of USD 32.3 billion, exceeding the record of USD 27.2 billion last year. If the forecast comes true, it will be the double-digit growth of the auto IC market for three consecutive years.

In the past few years, the global auto IC market has experienced remarkable growth. The market increased by 11.5% in 2014 and decreased by 2.5% in 2015. In 2016, the market rebounded and achieved a stable growth of 10.6%. It is worth noting that the decline in sales in 2015 was mainly caused by the drop in the prices of key auto IC products: microcontrollers, analog ICs, DRAM, flash memory, and general-purpose and special-purpose logic ICs. The falling prices of these products offset the steady growth that year. .

In 2021, the auto IC market will grow to USD 43.6 billion. The CAGR from 2017 to 2021 is expected to be 12.5%, which is the highest among the six major terminal applications. It is estimated that by 2018, the auto integrated circuits will only account for 7.5% of the entire IC market, and by 2021 the proportion will increase to 9.3%. Analog integrated circuits, including general-purpose analog and special automotive simulation, are expected to take up 45% of the automotive IC market in 2018, and MCUs secure a share of 23%. There are numerous suppliers of automotive analog devices. However, the acquisitions in recent years have reduced the number of large manufacturers. For example, in 2015, NXP acquired Freescale and now is acquired by Qualcomm; Analog Devices acquired Linear Technology in Mar. 2017, and Renesas acquired Intersil.

The post Automotive IC Market Predicated to Grow at 18.5% in 2018 first appeared on CRI Report.

Development Status of China’s Regional Integrated Circuit Industries and Policy Collection

admin — Mon, 28 May 2018 01:49:21 +0000

The recent ban on sales to ZTE has drawn wide public attention to the development status of the integrated circuit industry in various regions. The rise of mobile Internet, cloud computing, big data and internet of things have made China one of the world’s most important chip markets. In 2017, the sales value of the IC industry reached CNY 541.13 billion, increasing by 24.8% YOY.

The IC manufacturing industry grew fastest, with the growth of 28.5% YOY in 2017, and the sales value amounted to CNY 144.81 billion. The design industry and the packaging and testing industry continued to grow rapidly. The growth rates reached 26.1% and 20.8% respectively and the sales value were CNY 207.35 billion and CNY 188.97 billion.

In recent years, in order to develop the IC industry, China has given priority to integrated circuits. Fostered by the supportive policies of local governments, Hefei, Chongqing, Hunan, Zhejiang, and other provinces or cities are speeding up the construction of chip projects.

Hefei, Anhui

Hefei has gradually developed into one of the fastest growing cities with the most significant effects in China’s IC industry.

Industrial Status

Hefei has formed a complete vertical industry chain from design, manufacturing, packaging and testing to materials and platforms. There are 129 IC and related companies in Anhui, including 102 design companies, 3 wafer fabrication companies, 8 companies of packaging and testing and other 16 of equipment and material manufacturing. In 2017, the output value was CNY 23.56 billion and the investment reached CNY 7.25 billion. The average annual growth rate of each indicator exceeded 30%.

Policy

The new taxation policy puts forward “two exemptions and three half reduction”. Since Jan. 1, 2018, newly-built IC manufacturers or projects, which produce less than 130 nanometers of IC lines and are operated for more than 10 years, will be exempted from income tax in the first two years. During the third-to-fifth year, they can only pay half of the income tax at the legal tax rate of 25%.

Xiamen

Industrial Status

After full efforts over the past few years, the IC industry in Xiamen has laid a solid foundation. In terms of industrial space carriers, Xiamen relies on the Torch Hi-tech Zone and Haicang District to plan and construct space carriers such as IC manufacturing and supporting clusters, design and associated industrial parks, university scientific and technological parks and talent training bases.

In 2017, the IC output value reached nearly CNY 15 billion, increasing by about 40%. The output value of Xiamen enterprises with business revenue up to over CNY 20 million ranked in the top six in the country, and the output value of the design industry ranked fourth by growth rate.

On May 11, 2018, Equity Investment Fund was officially established by the Xiamen government and the IC industry. Its scale will exceed CNY 500 million.

Talent Introduction Policy

Detailed Measures for Accelerating Development of Xiamen’s IC Industrywas released around May 2nd, 2018. It covers investment and financing policies, supporting areas, talent subsidies and research supports for the development of the IC industry.

TheMeasuresshows that Xiamen will establish an IC industry investment fund with a scale of no less than CNY 50 billion, which plays as parent fund and will direct social capital, industrial capital, and financial capital to the IC industry.

Zhejiang

Zhejiang Province is one of the key national IC industrialization bases, where the industry developed earlier and a group of strong enterprises gathered.

Industrial Status

A group of key enterprises in Zhejiang are competitive in chip design, silicon material production, special chip manufacturing and industrial application. Also, a complete industrial ecology has been initially formed.

Policy

In Dec. 2017, the Zhejiang government promulgatedImplementation Opinions on Accelerating Development of Integrated Circuit Industry.It proposes that by 2020, the revenue of the IC industry and related industries will be raised from the current CNY 50 billion to CNY 100 billion and the industry will be built into a heavyweight.

Hunan

Industrial Status

Hunan Province has set layouts in all the industrial chain links of integrated circuit design, manufacturing, packaging and testing, equipment and materials. It has initially built three industrial clusters: Changsha Economic Development Zone, Changsha High-tech Zone and Zhuzhou CRRC. The main products involve information security, Beidou, industrial control, internet of things and consumer electronics.

In 2017, Hunan IC Association statistics showed that the sales revenue of Hunan IC companies reached CNY 17.934 billion. According to data released by China Semiconductor Industry Association, the IC design industry in Changsha increased at the annual growth rate of 431.40% in 2016, ranking second in the country, with the CAGR of over 50%. It is expected that the scale of the IC industry will be CNY 40 billion in 2020.

Chongqing

Industrial Status

Chongqing is a pillar city of emerging electronics in China. In 2017, its output value of electronic manufacturing exceeded CNY 570 billion, accounting for about a quarter of the city’s total industrial output value. The investment and construction of the industrial city “Xinyun”, subordinated to Tsinghua Unigroup, will lend tremendous impetus to the IC upstream and downstream in Chongqing. The annual sales revenue will exceed CNY 100 billion after the industrial city is put into operation.

The Nan’an District of Chongqing plans to create “one valley and two parks” for the leading position of the IC industry.

https://www.cri-report.com/telecoms-computing-semiconductor-pcb/781-2875-research-report-on-china-integrated-circuit-industry-2018-2022.html

The post Development Status of China’s Regional Integrated Circuit Industries and Policy Collection first appeared on CRI Report.

integrated circuit – CRI Report

Automotive IC Market Predicated to Grow at 18.5% in 2018

Development Status of China’s Regional Integrated Circuit Industries and Policy Collection