Yole Group’s latest Automotive White paper Vol. 2, shows that the automotive semiconductor market is set to grow from $68 billion in 2024 to $132 billion in 2030; growing at a 10% CAGR, five times faster than the automotive market itself. Following the success of Volume 1, this edition delves deeper into the forces shaping the future of automotive semiconductors.
The whitepaper explores how established semiconductor leaders and emerging challengers are repositioning themselves to capture value in this rapidly expanding market. Some are strengthening their positions in power management, electrification, and safety systems, while others are driving advances in computing platforms for ADAS, infotainment, and LiDAR; China, for instance, is making LiDAR a differentiator in its domestic EV race.
The global competitive landscape is shifting. US and European players continue to leverage scale, IP depth, and established OEM relationships to defend leadership. Meanwhile, Chinese companies, fuelled by national support, are aggressively building capabilities to secure a self-sufficient semiconductor ecosystem.
At the same time, OEMs such as Tesla, BYD, and Nio are accelerating vertical integration, further disrupting traditional supply chains and reshaping how value is captured across the ecosystem. There are upcoming challenges: geopolitical risks, AI-driven compute requirements, and the architectural shift toward centralised vehicle platforms will test the resilience of the entire supply chain.
The paper also highlights the process of node evolution and the rise of chiplet design, examining their implications for supply security and innovation. With TSMC and Samsung fully booked on sub-16nm capacity through 2027, questions about availability and strategic alignment with vehicle manufacturers are critical.
