Automotive LED lighting market has great potential

There are more and more electronic equipments and systems in automobiles, which are also the driving force for the innovation of automobile function.

Car manufacturers are increasingly using electronic system and semiconductor integrated circuit for various applications of the car, including the driver information and communication, car entertainment equipment, electronic transmission and body control electronics and automotive safety and comfort equipment.

Global sales of 700 million cars each year provides a huge market opportunity for automotive electronics. Car sales in Western Europe alone reached about 250 million. According to market research firm Research&Markets (Research and market forecast to 2010, half), electrical and electronic products used in automotive components accounted for the total cost of the proportion of the car from the current 25% to 40%. integration in automotive electrical and electronic components in a semiconductor integrated circuit. With the market value of 123 million euros ($180 million) in 2011 and an average annual growth rate of 6% to 9%, automotive electronics will become one of the major markets in the electronics market.

This growth rate is in stark contrast to the growth rate of global auto production. The average annual growth rate of global automotive production is about 3%. during the forecast period, so the car electronics market is growing at a much faster rate than the car market in terms of sales revenue. This shows the increasing trend of the electronic density and complexity of enterprises. According to the German ZVEI (German electrical and Electronics Industry Association) said the global automotive microelectronics market will grow 11.9%. by 2011, the global automotive electronics market sales revenue will grow from $19 billion 100 million in 2006 to $33 billion 500 million.

Automotive electronics has become one of the major differences in the automotive market standards. Automotive electronics will add value to cars, notably in Western Europe, where profits are significantly reduced, sales and production growth is down, competition is more intense, and cars are becoming more and more commercialized.

An important driver of the automotive market is the regulatory requirements to improve safety and reduce vehicle emissions regulations. Law can quickly create conditions for rapid development of this market.

In the next five years, there are five areas that are expected to drive the growth of automotive electronics and technological innovation. These areas include: reduce emissions and improve the efficiency of the engine; the traditional mechanical system to electronic control (the so-called "X-by-wire" system and driver assistance system) transition to improve safety and reduce power consumption; enhance the personalized functions, such as navigation and communication systems; increasing the convenience and comfort of the demand for cars increasingly demand; growth in emerging countries.

In these five areas, navigation and communication systems, as well as solutions to improve vehicle safety, provide the greatest potential for improving semiconductor applications in automobiles.

China's auto market is booming. According to market research firm iSupply said that by 2011, China's global production of electronic systems will be twice the semiconductor consumption, reaching $18 billion 400 million. This increase is mainly due to the demand for the growth of domestic light vehicle production of electronic components and many global car manufacturers are moving production activities to china.

International automotive electronics systems and components suppliers from the Americas, Europe, Japan and South Korea have started joint ventures with Chinese companies. These foreign companies including DELphi, Bridgestone and Bosch. in recent years, GM has invested $350 million in the southwest of the city of Liuzhou Chinese the Guangxi Zhuang Autonomous Region Wuling joint venture headquarters building a modern production plant. These factories produce commercial, low price, low fuel consumption light vehicles. This is contrary to GM's strategy in North america. GM sells large, expensive SUV and trucks in North america. The strategy is currently being challenged by rising gasoline prices and consumer tastes. Consumers are increasingly conscious of environmental protection.

In addition, analysts predict that the global demand for small and medium enterprises will increase in the next ten years, 30%. China car market grew 25%. China has overtaken Japan to become the world's second largest auto market last year, car sales reached 8 million vehicles, including mini trucks and mini cars. Since China has 10% cars per person, and the United States and Western Europe, each car ownership of 100 people is 80%, therefore, China's growth potential is huge. According to research firm ACNielsen, China wants more people to own a car than any other country, but they still don't want to buy it. China's auto parts industry will grow to $58 billion by 2009, with an average annual growth rate of 15%., China's domestic production will certainly be able to meet the growing demand for domestic auto parts. Semiconductor consumption is expected to grow to $2 billion 800 million by 2011. This is nearly double the size of the market in 2006 nearly $1 billion 500 million. According to market research firm Research&Markets, which will make China the world's fastest growing automotive electronics market. The report said that by 2012, China's average value of each car's electronic original will grow from $300 in 2003 to $500. An average of 70 to 100 processors are integrated into each of the vehicles in an electronic system of 30 different functions. These electronic systems include engine control, transmission systems, body electronics systems, security, entertainment and security systems, etc.. Semiconductor devices for automotive applications include microprocessors (typically PowerPC and ARM), 8, 16, 32 bit microcontroller, DSP (digital signal processor), programmable logic device, interface chip, switch