Strategy Analytics: Growing Automotive ASIC Market Provides $2.4 Billion Opportunity
BOSTON--(BUSINESS WIRE)--May 5, 2005 -- The latest Strategy Analytics report, "Automotive ASIC Competitive Environment," reveals the growing opportunities in the automotive semiconductor market for ASIC (Application Specific Integrated Circuit) vendors with specialized mixed-signal capabilities. Mixed signal devices represent the fastest growing demand in this $2.4 billion automotive ASIC sector. Both niche and major semiconductor players are finding success with automotive demand.
Application specific integrated circuits (ASICs) are essentially custom chip designs that provide application-optimized solutions for individual clients, providing higher levels of integration than a cluster of catalog chips. These ASICs applications can be segmented into three broad types: purely analog, purely digital, or mixed signal (analog and digital signal processing on the same chip).
A plethora of embedded microcontrollers, sensors, signal processing, memory, power driver and RF circuits are required by today's sophisticated electronic control of vehicle powertrain, chassis, driver information and body systems. Strategy Analytics research found designers frequently using ASIC devices to variously optimize cost, performance and time-to-market in specialized functions, beyond that provided by the wide range of catalog ICs and automotive ASSPs (Application Specific Standard Products.
Automotive ASIC applications are predominantly mixed signal. Strategy Analytics predicts growth demand for ASICs will continue to be driven by mixed signal applications, as electronic control is increasingly dispersed around the vehicle, with growth in the use of networks and smart sensors.
"Mixed signal ASIC technology provides greater opportunity for electronics integration, increasing design efficiency for the automotive systems manufacturers. Thus, feature-rich designs can be applied to the increasingly electrified applications with lower cost and improved reliability," says Simon Schofield, Senior Analyst, Automotive Electronics Service. "Very high density digital ASICs are emerging which will free designers from the constraints of deploying catalog microprocessors, permitting them to create their own dedicated designs, honed to individual applications."
Strategy Analytics also found that the stringent and often specialized requirements of automotive electronic controls is enabling small, niche players, such as Austriamicrosystems, Dialog and Elmos, to thrive alongside the major semiconductor vendors in the automotive ASIC sector. All of these ASIC manufacturers are known for in-depth expertise for analog, mixed-signal and RF circuit design.
About Strategy Analytics
Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com
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