Semiconductor market news(November 28 to December 04)|Semiconductor expected to rebound in second half of 2023;Auto ICs to be $80bn market in 2027;China NOR flash vendors gearing up for automotive applications…

01.Global semiconductor market will shrink by 4% in 2023

According to Nikkei Asia, the global semiconductor market is expected to shrink by 4% to US$557 billion in 2023, the first annual contraction since 2019.

Chipmakers have ramped up production in response to past supply constraints, but consumer demand for devices such as smartphones and computers has begun to decline, the report said. In addition, the growth of global server shipments is expected to slow from 5.1% this year to 2.8% in 2023, and the memory chip market is expected to decline by 17%

According to WSTS forecasts, Japan, the United States and Europe will see growth in 2023. But the rest of the Asia-Pacific region, which includes China, is expected to decline by 7.5%. This is mainly due to the US's restrictions on the export of chip technology to China, as well as the impact of China's epidemic prevention and control on the output of factories.

02.SIA: Semiconductor demand expected to rebound in second half of 2023

According to the latest report from the Semiconductor Industry Association (SIA), 2022 will be a year of historic significance for the semiconductor industry, but the industry continues to face major challenges. The semiconductor industry is notoriously cyclical, and demand is not expected to rebound until the second half of 2023.

SIA pointed out that the shortage of semiconductors has warned the importance of semiconductors. 2022 will be a very successful and important year for the semiconductor industry, because semiconductors have a greater impact on the world than in the past.

However, the semiconductor shortage will gradually ease in 2022. The growth of global semiconductor sales will slow down sharply in the second half of this year, and the industrial utilization rate will decline. It is estimated that the utilization rate will drop below 85% in the fourth quarter of this year.

03.Auto ICs to be $80bn market in 2027

Electrification and ADAS are the main drivers for this growth for which the most common devices are Si IGBT modules and SiC MOSFET modules which are used in the main inverters for e-motor traction.

Despite a relatively flat light vehicle market, the market for automotive semiconductor chips is expected to increase from $44 billion in 2021 to $80.7 billion in 2027 at a CAGR of 11.1%.

This represents a semiconductor chip value of ~$550/car, growing to ~$912 in 2027.

There is also an increase in the number of chips in cars, from ~820 chips today to ~1100 chips per car in 2027.

04.As of October, China's IC production and exports fell by 10.8% this year

On November 30, the Ministry of Industry and Information Technology released the operating status of the electronic information manufacturing industry from January to October 2022. From January to October, the production of my country's electronic information manufacturing industry grew steadily, the growth rate of export scale showed a downward trend, corporate profits gradually recovered, and the growth rate of investment remained high.

According to China Customs statistics, from January to October, my country exported 143 million notebook computers, a year-on-year decrease of 20.8%; exported 690 million mobile phones, a year-on-year decrease of 10.2%; exported 230.4 billion integrated circuits, a year-on-year decrease of 10.8%.

05.China NOR flash vendors gearing up for automotive applications

China's NOR flash suppliers, including Giantec Semiconductor and GigaDevice Semiconductor, are strengthening deployments in automotive applications as part of their efforts to offset declining demand from consumers, according to industry sources.

GigaDevice said, "Currently, the automotive and industrial sectors are becoming the fastest-growing application areas for the company's NOR Flash storage products, and the revenue of automotive NOR Flash's top customers in the industry is growing rapidly."

06.Baidu to supply L2+ driver-assisting ANP 3.0 mid-2023

Baidu unveiled its latest progress on unifying L4 and L2+ autonomous driving technology on Apollo Day held on November 29 and announced that it will deliver L2+ driver-assisting product "ANP 3.0" in the summer of 2023.

07.Automotive chip factory: the latest developments of ADI and Bosch

Analog Devices produces two categories of automotive sensors and have seen their supply severely affected. The first category, MEMS Safety and Security sensors, include accelerometers and gyroscopes for crash sensing, security, and stability control. The second category is Autonomous Vehicle Perception Sensing and Navigations. Most of the accelerometers and gyroscopes are assembled and tested in factories in the Philippines, which now have a 26- to 52-week lead time for popular series like the ADXL1/2/3 xxx. The hottest series, ADXL312, ADXL362 and ADXL345, have lead times of up to 90 weeks.

As an established leader in MEMS technology, Bosch has become synonymous with components that are small, reliable and affordable. These components are integral parts for major automotive customers throughout the world, but elevated demand is extending lead times, which now sit at 26 weeks. To meet the increasing needs of customers, Bosch is concentrating on the following applications:

1) Bosch barometric pressure sensors SMP58xx;

2) Highly automated driving system with MPN SMUxxx;

3) Active suspension systems SMAxxx;

4) Vehicle comfort system with acceleration sensors SMA13x & angular rate; 5) sensors SMG13x and integrated inertial sensor SMI23x.

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