In the current special context of Global trade, the game between big countries is becoming more and more intense, which once again reminds us how important it is to achieve autonomy and control. In the field of automotive chips, which is second only to mobile phones in market capacity, key parts can not be "stuck". As the largest automobile producing and marketing country in China, with the advent of new energy and automatic driving, industrial upgrading is the only way. Automotive semiconductors have ushered in qualitative changes in the correct supply, and China's automotive semiconductors are also expected to usher in the dawn.

A new automobile era is coming

For a long time, internal combustion engine has been the source of value and innovation in automobile industry. Today, we are entering a new automotive era. Cars will be different due to the functions provided by semiconductors and electronic products. With the increasing maturity of automotive electronic technology, vehicles are moving towards electrification, automatic driving, vehicle networking and mobility as a service.

In the future, KPMG will be the second most important application of the Internet of things in the world after semiconductor in the survey of senior executives in 2019. Obviously, the automotive market has become the first choice for semiconductor industry leaders.

Semiconductor executives realize the importance of automotive applications

Although electric vehicles now account for only 2% of global light vehicle sales, the large-scale market of electric vehicles may take a decade or more, according to the latest KPMG research. However, electric intelligent interconnection is the general trend. Most analysts believe that more than 50% of cars will realize some form of electrification by 2030. Moreover, as the automotive power system changes from traditional diesel locomotives to electric vehicles, the semiconductor content (calculated by value) of each vehicle has doubled, such as the use of discrete semiconductors, composite semiconductors and sensors.

Then there is automatic driving. Although the large-scale production of automatic driving of level 5 is still far away, level 4 vehicles will appear in commercial fleets in the urban market in the next two to three years. The semiconductor content (by value) of these vehicles will be 8 to 10 times that of cars without automation.

The most obvious impact of the increasingly mature automotive electronic technology on the semiconductor industry will be the accelerated growth of demand. Automotive semiconductor devices mainly include MCU (vehicle microcontrollers), power semiconductors (IGBT, MOSFET, etc.), sensors and so on. However, semiconductor devices used by autopilot include ADAS, COMS image sensors, AI main control, laser radar, MEMS and a series of products.

All the above device fields involved in automotive semiconductors have great opportunities for automotive semiconductor suppliers and the whole automotive supply chain. In the automotive electronic products industry, more and more new players are flocking. Traditional automotive players are either changing into semiconductor suppliers or have closer and closer relations with chip manufacturers.

According to the data of the International Association of automobile manufacturers, the global output of passenger cars in 2018 was 70.57 million, of which China accounted for 33%. China is the largest automotive semiconductor market. NXP and Renesas, the world's major automotive semiconductor suppliers, accounted for 36.5% and 20.2% of the group's sales revenue in China in 2018 respectively. However, according to the analysis of the sales regions of major automotive semiconductor enterprises in the world and the semiconductor procurement of major automotive electronics enterprises in China, it can be judged that China's automotive semiconductors basically rely on imports.

In 2018, China accounted for 33% of global passenger car production