Paul van Gerven
5 December 2022

Yole Intelligence predicts that the automotive chip market will increase from 44 billion dollars in 2021 to 80.7 billion in 2027, amounting to a CAGR of 11.1 percent. This represents a semiconductor chip value of 550 dollars per car, growing to 912 dollars in 2027. The number of chips implemented in a car will go up from about 820 today to about 1100 in 2027.

2021-2027 semiconductors for automotive market forecast. Source: Semiconductor Trends in Automotive 2022 report, Yole Intelligence

Car electrification is an important growth driver, particularly for power electronics. SiC is expected to represent 1.1 million automotive wafers in 2027. While still low compared to the 30.5 million wafers of Si expected for 2027, SiC will grow faster than Si and GaAs/sapphire.

Advanced driver-assistance systems are also a big contributor. MCUs with cutting-edge technology as low as 16nm and 10nm will go into ADAS, including radar and other sensor controls. Levels 4 and 5 of autonomy will drive increasing demand for more memory (DRAM) and computing power.