18 Oct 2022 -

Demand will ‘skyrocket’ – McKinsey on automotive electronics

Toyota cars

Demand for automotive chips is skyrocketing as vehicle technology becomes more sophisticated – says Mckinsey’s new report.

“With no end in sight to the supply–demand mismatch, we recently took a closer look at the automotive-chip market to get a better understanding of the forces in play.

“Our analysis showed that overall revenues for automotive chips could rise from $41 billion in 2019 to $147 billion by 2030.

“Our analysis showed that annual demand for 12-inch–equivalent automotive wafers could increase from about 11 million in 2019 to 33 million by 2030—a CAGR of 11 percent.”

“Semiconductor companies are increasing production of 90 nm chips, but our analysis suggests that the CAGR will remain at only 5 percent or so from 2021 through 2026—not enough to eliminate the supply–demand mismatch.”  

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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