Who will lead the future development of automotive semiconductor market growth

-10 in January 2005, China's total production of 2 million 358 thousand and 800 cars, up 21.5% over the previous year. With the rapid development of Chinese automotive industry, consumer demand for automotive intelligent, multimedia and network continues to improve, which led to the development of automotive electronics to a variety of applications, will further stimulate the market demand of semiconductor products.

In 2005, what are the characteristics and trends of global and China Automotive semiconductor market?

The end of the year approaching, the inventory China car market, once again we see a gratifying situation. The vast majority of people believe that, after several years of rapid growth in automobile production, in recent years, China's automobile development will enter a slow growth period. But the fact is often beyond most people's expectations, January 2005 -10 months, China's total production of 2 million 358 thousand and 800 cars, an increase of 21.5% over the same period last year.

But from the perspective of the passenger car manufacturers in the production, we are pleased to see that some independent brands have made considerable progress in the production of factory production of passenger cars, and most of the joint venture brand has a relatively large decline.

But it is undeniable that China's automobile manufacturing industry is still in its infancy. Compared with the joint venture company and the global automobile manufacturers, China's local car companies to enter the automotive industry later, they can only be obtained through joint ventures, consulting companies or design companies to apply knowledge. Generally speaking, foreign automobile manufacturers will be with the automotive electronics suppliers, automotive design company of electronic systems, and even car semiconductor manufacturers have a very large cooperation, but in our country because of foreign joint venture companies control technology and domestic automobile manufacturers is still relatively weak, there is no large-scale automobile electronics manufacturers and other reasons plus in the whole automobile industry chain, the mode of cooperation, also is very not enough. Of course, with the unremitting efforts of China's local car manufacturers, I believe the future will continue to strengthen cooperation.

In the field of automotive electronics, foreign manufacturers are as follows to occupy an absolute advantage. Whether from the market size, or technology leadership, domestic manufacturers are not a small gap. China's automotive electronics manufacturers are still facing great difficulties in the accumulation of core technology, market development and capital investment.

But we also see that China has been very successful in establishing a low cost manufacturing base for consumer electronics and home appliances. China's auto electronics manufacturers are expected to follow the same rules of success in order to seek low-cost (low-end) solutions. In this situation, the low-end system applications and vehicle systems will dominate the local automotive electronics market. The challenge for Chinese automakers is how to develop high quality, reliable, and increasingly functional automotive electronics systems that compete with global competitors. In this case, China automobile manufacturers and automotive electronics manufacturers should work together, on the one hand, spend time and energy to industry and international standards, to keep up with the international trend of technology; on the other hand, to develop their own standards, including cooperation with the government to improve various regulations.

In view of China's huge car market, if coupled with the government's support policies, China's auto electronics manufacturers will move forward quickly.