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Semiconductor Market Opportunities

Increased levels of automation in passenger vehicles and the ongoing digitalization of industry are just two areas driving demand for advanced microelectronics solutions in application industries.

Automotive Industry

The automotive industry is the largest industry sector in Germany, generating turnover of EUR 379.3 billion in 2020. Despite a 13 percent drop in annual turnover caused by the coronavirus pandemic, it remains the strongest and most export-driven industry in Germany – with export volume of almost EUR 243 billion. Innovation is a key priority– 55.3 percent of companies have introduced innovative products to the market in the past three years – with R&D spending just below EUR 50 billion in 2019.   German automotive companies are responsible for around one third of global auto industry R&D investment.

World’s Automotive Innovation Hub

The global auto industry is in a period of radical transformation due to the rise of e-mobility and connected and automated driving technology developments. More than 130 years after inventing the automobile, Germany remains the world’s automotive innovation hub – leading the way out of the coronavirus pandemic and forward to a new mobility era.

Automotive 4.0

Semiconductor demand in the auto industry is set to grow by around 12 percent annually according to the German Electro and Digital Industry Association. In 2019, automotive semiconductor generated EUR 41.2 billion in global turnover according to IHS Markit. Total turnover of around USD 50 billion was forecast for 2021. This development is thanks to the growing importance of electric mobility and autonomous passenger vehicles. Although still in its infancy, autonomous driving will give birth to new business models and a data-based ecosystem for connected in-car services.

Premium Passenger Vehicles

The advent of connected services also complements growth in the premium passenger-vehicle segment. Germany currently produces around 36 percent of all premium passenger vehicles globally, with 67 percent of all premium passenger vehicles manufactured by German OEMs.

Manufacturing and Production Industry

Microelectronics has a decisive role to play in the ongoing digitalization of industrial production.  Microelectronics and microsystems are central to Germany’s Industrie 4.0 project to establish the country as an integrated industry lead market and provider. As key enablers in industrial automation, electronics and sensors help transform production systems and products into cyber-physical systems (CPS). Embedded system production technologies and intelligent production processes show the way forward for peerless ICT-based integration making vertically integrated and networked manufacturing a reality.

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