Mature process manufacturing demand to stay robust for automotive ICs, says McKinsey

Jay Liu, Taipei; Jessie Shen, DIGITIMES Asia 0


The manufacture of automotive ICs will continue to rely mainly on mature process technologies, according to Denise Lee, senior consultant at McKinsey.

Speaking at a forum during the ongoing SEMICON Taiwan 2022, Lee indicated the market for automotive ICs will continue to expand over the next several years with the market growth set to outperform other categories.

Mature process technologies will remain the mainstream for automotive chip production, Lee said. Mature process manufacturing demand for automotive ICs is expected to register a CAGR of about 10% through 2030, Lee noted.

Meanwhile, the manufacture of automotive ICs will increasingly require advanced process technologies of 19nm and below, Lee indicated. Automotive ICs account for only 10% of the advanced process market segment, which is expected to see automotive chip demand rise at a CAGR of 24% through 2030, Lee said.

The automotive IC market will come to US$125 billion in value by 2030, up from US$42 billion in 2021, according to estimates by McKinsey.

Also among forum speakers for SEMICON Taiwan 2022, Gartner VP analyst Gaurav Gupta expressed optimism about the automotive IC market growth over the next few years. The market for automotive HPC chips is forecast to reach US$10.1 billion in 2026, up from US$500 million in 2022, while the EV chip sector will grow to US$22.3 billion in 2026 from US$10.2 billion this year. The market for ADAS chips will also climb to US$27.8 billion in 2026 from US$13.7 billion in 2022.