Why did ON Semiconductor seize the opportunities in China's automotive semiconductor market?
Today, automotive megatrends are driving the rise of semiconductor components. The main driving factors include: key applications of power systems, such as improving automobile energy efficiency and the use of clean energy technologies for automobiles, smart electric vehicle power management, and the use of high-efficiency transmissions; key body applications, such as networking, advanced lighting and LED lighting; Key applications for safety / chassis, such as collision avoidance and dynamic braking; key applications for infotainment systems, such as driver information, plug-in equipment / charging; emerging markets, including the reuse of proven architectures in mature markets to meet automotive pricing requirements, although The semiconductor components of low-cost cars are low, but the amount is huge. For the luxury car market, the problem is to seize different needs, improve power performance, and achieve maximum emission reductions. Electric vehicles are still a niche market. The power electronics used are different from traditional internal combustion engines. The challenge is to combine traditional and proven Technology is integrated in electric vehicles. Therefore, cheap cars are in batches, luxury cars are in innovation, and electric cars are a brand new technology. These are conducive to promoting the development of the automotive semiconductor market. China's automotive semiconductor market has huge potential China has become the world's largest auto market and continues to lead the global auto market exhibition. By 2017, it is expected that China's annual car production will reach 30 million vehicles (accounting for 28% of the total global production of 107.1 million vehicles); from 2012 to 2017, China's auto production will have a compound annual growth rate (CAGR) of 11%. After experiencing the rapid growth of economic and automotive industry stimulus measures from 2009 to 2010, and the subsequent slowdown in liquidity tightening, from 2014 to 2015, although some major cities are restricting automobile growth, they are relaxing monetary policy, certain On the premise of fiscal stimulus and no longer falling prices, China's light vehicle sales growth trend is shifting from a "soft" landing to a "controllable" growth. After 2017, we will focus on the steady growth of fuel demand management measures. The automotive market is directly related to the automotive semiconductor market, but it has its own peculiarities. The growth rate of the automotive market in Europe, America and Japan is less than 5%, the BRIC countries such as China are higher than 10%, and the growth of automotive semiconductors can reach 15-20%. The automotive electronics market is similar to Europe and North America. In 2012, China's automotive semiconductors increased by 12% year-on-year. Due to the increasing strategic pressure of semiconductor manufacturers, it is expected that the global automotive semiconductor CAGR will be 7% from 2012 to 2017; China automotive semiconductor CAGR is 15%. It is worth mentioning that in 2012, the Chinese market accounted for a small proportion of the world, Japan is the largest, followed by North America and Europe; 5 to 7 years later, China will be the same as North America and Europe. In 2019, global HEV / EV production will reach 9 million vehicles, accounting for about 9% of the total global automobile production. In addition, by 2019, Japanese OEMs' HEV / EV production will account for about 30% of global HEV / EV production. The global proportion of HEV / EV produced in China will increase from 3% in 2011 to 18% in 2019. Among them, the production of Chinese local OEMs will account for 10% of global HEV / EV production by 2019. It's a pretty good scale. ON Semiconductor Automotive Business Strategy ON Semiconductor is one of the top ten automotive semiconductor suppliers in the world. In the automotive market segment, ON Semiconductor ’s 2012 revenue from the automotive market segment was US $ 752 million (26% of the company ’s revenue), a year-on-year increase of 4.5%; the leading advantage is reflected in power systems, bodywork, and infotainment systems , Power supply, vehicle network. ON Semiconductor's key automotive applications The reason why the automotive semiconductor market increased by 10% year-on-year is due to the sales of cars in emerging markets that account for more than 50% of the global market. There is also growth in fuel economy, safety, convenience and infotainment systems, and hybrid electric vehicles (HEV) EV) Electric vehicles have promoted the increase of semiconductor components in power electronic systems by about 5 times. The key growth drivers for ON Semiconductor include advanced LED lighting ICs, parking assist ICs, one-click start / stop ICs (uHybrid), switching power supplies / motor driver ICs / intelligent power modules (IPM), angle / pressure and position sensor interface ICs LIN / CAN / FlexRay transceiver, MOSFET / IGBT / protection, and penetration into the Asian market. ON Semiconductor's automotive business strategy is mainly reflected in three aspects. First, focusing on growing customers and applications, selling semiconductor devices used to build automotive systems; second, taking advantage of "ASIC + ASSP + discrete = solution", the main market includes engine management systems, headlights, parking assistance Systems, and related electronic systems, such as dashboards, infotainment, door modules, driver assistance systems, etc .; third, accelerate development in Asia and China. The challenge in realizing this process is that in the automotive environment, the temperature of parts and components will experience ups and downs, and devices that are generally used in industrial applications cannot meet the requirements of automotive applications; from the perspective of the specificity of semiconductor applications, if a component is damaged, Cause the failure of the entire module and the vehicle. In addition, in terms of innovation, the foresight of semiconductor manufacturers is very important, because it takes several years for R & D modules to enter mass production.
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