Auto chip market forecast to grow 22 pct this year: data
SEOUL-- Demand for automotive chips is forecast to grow sharply this year as automakers around the globe are accelerating their moves to develop electric and autonomous vehicles, and chip prices are expected to remain high, industry data showed Sunday.
According to the data compiled by industry tracker IC Insights, the automotive chip market is estimated at a record US$28 billion for the year, up 22.4 percent from a year earlier, accelerating from last year's 10.8 percent on-year rise.
The global automotive chip market suffered a 2.5 percent drop in 2015, after rising 11.5 percent in 2014, mainly due to a fall in chip prices, the data showed.
But in 2016, rising prices of chips helped the global auto chip market post double-digit growth, the data showed.
The data showed rising chip prices also lent support to the growth of the global automotive chip market.
Prices of DRAM and NAND flash memory chips have risen 50 percent and 28 percent so far this year, respectively, compared with the same period last year.
In line with strong demand for auto chips, South Korean chipmakers have been expanding their automotive semiconductor businesses.
Samsung Electronics Co. earlier said that it will supply chipsets for an in-car entertainment system to Audi.
SK hynix Inc. has supplied automotive memory chips to Nvidia Corp. of the United States since 2012.
In September last year, SK hynix set up a team to expand its chip business for advanced driver assistance systems and self-driving cars.
Source: Yonhap News Agency