The semiconductor industry market has changed very rapidly in recent years. From 2021 to 2030, the growth rate of the whole CAGR slowed down compared with the previous years, about 6% to 7%. From 2021 to 2023, it is mainly driven by three segments.

The first is the data center and advanced computing business, which is the driving direction of the National Industrial Fund;

The second is wireless communication. As the construction of 5G and next-generation communication base stations continues to spread, its overall annual compound growth rate can reach nearly 6%;

The fastest growing segment in the semiconductor market is automotive semiconductor and automotive semiconductor, with a CAGR of about 13% from 2021 to 2030.

Among them, automotive electronics is the first to bear the brunt. The growth drivers of automotive semiconductors and automotive semiconductors are subdivided into four parts:

First of all, the largest part is driverless, which is also the fastest growing part of the vehicle market, including a large number of on-board computing, perception, etc;

The second part is the intelligent cabin and its interconnection in the body, including the center console, control system, intelligent cabin, lighting system, Ethernet for internal communication with the body, and V2X system;

The third part is that with the recent development from the internal combustion engine vehicle to the pure electric vehicle, the whole vehicle body is electrified, that is, the "three electric" system, such as the battery management system BMS, the steering power of the vehicle body, the DC AC charging pile, the traction control, the inverter control of the vehicle body drive motor, etc;

The last part is public/commercial/shared travel, such as the location of some rental vehicles, gateways, emergency calls, remote billing, ETC, etc., which is also a fast growing part.

These four parts are connected with each other, and lead other industries to move forward and increase the volume together through automobile semiconductor.

With the rapid development of automotive semiconductors, we have to mention some challenges brought by the development of semiconductors, especially the challenges of the testing industry. An industry trend in the past two years is that more and more semiconductor companies, whether design companies or IDM, have gradually moved from the consumer market to the industrial control and automotive market. The accelerated growth of automotive semiconductors is optimistic about this "pie", which means that more competitors will enter the market, and the competition will become more fierce, gradually from the blue ocean to the red ocean. For all design companies, products need to have a faster launch cycle and get the certification of tier1 and tier2 manufacturers faster.

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