Automotive Semiconductors Set to Skid in 2009, But This is No Industry Heading for a Crash

Montreal, Canada, March 23, 2009 --(PR.com)-- Electronics.ca Publications, the electronics industry market research and knowledge network, announces the availability of a new report entitled "Automotive Market for Semiconductors".

There can be few greater indicators of the troubles facing the automotive sector than the warning from Toyota Motor Corporation, the world's largest vehicle maker and one of its most profitable, that for its current financial year it will make an operating loss, its first in over seventy years. With production plants on extended shutdown and unsold vehicles waiting for buyers, there can be no doubt that 2009 will be one of the most challenging years ever for automotive semiconductors.

It is forecast that 2009 will see the largest fall in automotive semiconductor revenues ever recorded, according to the report. However history shows that automotive is one of the most consistent and stable markets for semiconductor suppliers and according to the report, with the passing of the current global financial troubles, automotive semiconductor revenues will return to, and exceed, levels seen in recent years.

The Future:

The report does not foresee a return to the horse and wagon any time soon, so the eventual passing of the financial storm, stabilizing of the global economy and gradually decreasing levels of unemployment will almost certainly result in normal order being resumed in the automotive industry. The consensus of industry opinion suggests that global light vehicle production will decline to around 60 million in 2009 (roughly equivalent to 2004 levels) but then to rise steadily thereafter, with production growing most strongly in the BRIC countries and in China in particular. One key trend regards regional production; while North America, West Europe and Japan collectively accounted for two-thirds of global production in 2007, this is forecast to fall to one-half by 2015. Semiconductor suppliers looking to benefit from the upturn in the automotive market should pay particular attention to this trend, especially the implications of an over-reliance on developed regions, which could result in slow growth.

Looking ahead to the future of the automotive industry, automakers remain committed to the adoption of intelligent electronic systems which make their vehicles more environmentally friendly (through the use of advanced hybrid power trains to improve fuel economy and reduce tailpipe emissions), safer to drive (with advanced driver assistance systems such as lane departure warning, blind spot detection and intelligent cruise control) and more pleasurable to travel in (with advanced entertainment systems). The advanced capabilities of these systems are made possible not only by the use of ever more complex electronics, but by the adoption of ever faster, more powerful semiconductors. It is apparent therefore that the ability of automakers to comply with ever more stringent safety and environmental legislation and to satisfy the increasing expectations of the driver and passengers is wholly dependent on ever increasing use of semiconductors. As a result, as confidence grows and consumers return to buying new cars, so it is predicted the automotive semiconductor market will revert to growth.

Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: http://www.electronics.ca/reports/automotive/semiconductors.html

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