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Infineon takes top spot for automotive ICs, Freescale slips to third

Wednesday, May 5, 2010
By Gina Roos

London, England — Infineon Technologies outsold Freescale Semiconductor as the leading supplier of semiconductors to the automotive industry in 2009, according to a report from Semicast Research.

Freescale held the leading position for many years before dropping to third place behind newly formed Renesas Electronics, said Semicast. Rounding out the top five are STMicroelectronics and NXP Semiconductor.

Semicast’s analysis shows that most of the leading suppliers to the automotive sector lost share in 2009 with the exception of Texas Instruments and ON Semiconductor, which both recorded lower revenues but at a rate slower than the sector’s average.
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Semicast notes that the creation of Renesas Electronics, formed in April following the merger of Renesas Technology and NEC Electronics, skews the historical rankings in the market.

“Presenting a combined market share for the two companies shows that Renesas Electronics has been market leader to the automotive sector for the last few years, ahead of Freescale,” said Colin Barnden, principal analyst at Semicast Research, in a statement.

“However Renesas Electronics’ automotive activity is judged to have also been significantly impacted by the market decline in 2009, resulting in it falling into second place behind Infineon. Infineon has therefore moved from third ranked supplier to first in only two years,” he added.

Semicast estimates that the global automotive semiconductor market fell by 17 percent in 2009, ending at $15.8 billion, the largest ever one year decline. Automotive semiconductor sales peaked in 2007 at $20.0 billion, but fell in both 2008 and 2009 to a level now 20 percent below the peak, said Semicast.

The good news is that Semicast analysts expect the automotive semiconductor market to grow 16 percent in 2010. Automakers remain committed to the adoption of advanced electronic systems, aimed at eco-friendliness, safety and comfort, thanks to more powerful semiconductors, according to the market research firm.

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