A long-standing trend of automotive chips gaining market share was interrupted last year, IC Insights reports. Automotive’s market share increased from 4.7 percent in 1998 to 8.7 percent in 2019, before falling back to 7.5 percent in Covid-plagued 2020. Despite the automotive IC shortage, the average selling price for many automotive IC products has remained fairly constant. For example, the ASP for automotive application-specific ICs was 0.96 dollars in 2020 and 0.95 dollars in 1Q21.
After a 3 percent drop in 2020, IC Insights expects the automotive IC market to grow more than 25 percent in 2021. Many IC industry headlines have recently focused on the shortage of automotive ICs, but given its relatively small size, strong growth in the automotive segment isn’t expected to significantly lift the growth rate of the total IC market this year. In fact, the 1Q21/1Q20 automotive IC market grew 23 percent, the same rate as the total worldwide IC market.