▲2021 Global Automotive Semiconductor Company Performance (Unit: Millions of Dollars, %, Source: Announcements from each company, e4ds News Survey)



Electric and autonomous vehicles contribute to increased semiconductor sales.
Automotive semiconductor sales accounted for 9% of total semiconductor sales last year.

Global automotive semiconductor companies' 2021 business performances achieved record-breaking sales volumes and unit price increases, fueled by a global shortage of automotive semiconductor components and increased demand.

According to an analysis of the 2021 business performance of six global automotive semiconductor companies surveyed by e4ds News, sales reached $70.839 billion, a 29% increase year-on-year, and operating profit reached $36.269 billion, a 43% increase year-on-year.

Excluding Infineon and Renesas' net income, the net income of the remaining four companies was $12.692 billion, an 81% increase year-on-year.

This performance increase was driven by record-breaking sales volume and unit price increases for automotive semiconductor companies in 2021, driven by increased global demand for automotive semiconductors and rising prices due to widespread component shortages.

Texas Instruments (TI) ranked first in sales. TI's 2021 sales reached $18.344 billion, a 27% increase year-over-year, and operating profit rose 34% to $12.376 billion. Net income was $7.77 billion, up 39% from the previous year.

TI said it is “turning to analog and embedded technologies to make end products smarter,” adding that “this trend will continue to increase chip content per application and drive rapid market growth.”

Infineon's 2021 revenue was approximately $12.8 billion, up 29% year-over-year, and operating profit was $4.93 billion, up 53%.

In its 2021 business report, Infineon forecasted a bright future for the automotive semiconductor sector, stating, “Sales in the automotive and connected secure systems sectors are expected to grow at a much higher rate than other sectors in 2022.”

STMicroelectronics reported revenue of $12.76 billion in 2021, up 25% from 2020, and operating profit of $5.326 billion, up 41%. Net income for the year reached $2 billion, up 81% from the previous year.

STMicroelectronics announced that “advancements in automotive technology mean an increase in the number of semiconductors installed,” and that “automotive semiconductors will be developed in line with safety, security, and eco-friendliness trends.”

NXP's revenue last year was $11.063 billion, up 28% from 2020, and operating profit was $6.067 billion, up 43% from the previous year.

In particular, NXP's automotive division sales recorded a 44% annual growth rate to $5.493 billion, accounting for 49.6% of total sales, or half.

Renesas reported revenue of $9.123 billion in 2021, up 39% year-over-year. Operating profit also increased 56% year-on-year to $4.852 billion.

Renesas said the recovery in automobile sales, which had declined due to the coronavirus pandemic, led to increased sales in 2021.

Onsemi also showed an upward trend. In 2021, sales increased 29% year-over-year to $6.739 billion, and operating profit increased 58% to $2.714 billion.

“Increased demand for automotive-related products and improved economic conditions across the automotive industry, including for auto parts manufacturers, led to increased sales,” Onsemi said in the report.

Microchip reported revenue of $4.976 billion for the period April 1, 2021, through December 31, 2021, up 25% from the same period in 2020, and operating profit of $3.229 billion, up 32%.

Japan's Rhom also showed growth. Rhom's revenue for the period April 1, 2021 to December 31, 2021, was $3.13 billion, up 28% year-over-year, and operating profit was $1.09 billion, up 35%.

With the rise of automotive electrification and display components, as well as the increasing adoption of autonomous driving, semiconductors are emerging as a key player in the automotive industry.

According to Omdia, automotive semiconductor sales already exceeded $50 billion in 2021 and are projected to continue growing at an annual rate of 12.3% through 2025.

The development and spread of electric and autonomous vehicles has also driven the growth of the automotive semiconductor market.

The International Energy Agency (IEA) predicted in its '2021 Global Electric Vehicle Outlook' report last year that the number of electric vehicles worldwide would increase from approximately 11 million in 2020 to 230 million in 2030.

Additionally, the global autonomous vehicle market is expected to reach $1.2 trillion by 2035, with an average annual growth rate of 21.9%.

While a typical vehicle is equipped with about 300 semiconductors, an electric vehicle is expected to be equipped with about 2,000, and a self-driving car is expected to be equipped with up to 30,000 semiconductors.

Accordingly, it is analyzed that companies with automotive semiconductor portfolios will seize growth opportunities in the future semiconductor market.

Automotive semiconductor sales accounted for 9% of total semiconductor sales last year, ranking fourth after smartphones, PCs, and data centers.

Driven by the growth of autonomous and electric vehicles, companies have also seen a notable increase in sales.

Competition in the automotive semiconductor market is expected to intensify.

Intel announced at its Investor Day last month that it would provide cutting-edge processes for the automotive industry. This decision comes as the automotive sector's share of the semiconductor industry grows.

Samsung Electronics has also strengthened its portfolio of automotive system semiconductors, including processors and power management chips, and has begun supplying automotive memory solutions to global automakers.

With companies like SK Hynix, Samsung Electronics, and Intel investing heavily in automotive semiconductors, established companies like Infineon and NXP are also jumping into the fray, leading to fierce competition.

Meanwhile, the automotive semiconductor crisis is still an unfinished business.

Last year, a semiconductor shortage caused production disruptions for approximately 10 million units.

The semiconductor supply shortage has been improving since December of last year, but shortages of some items are expected to persist until the first quarter of this year.

Some say the shortage will ease in the second half of 2022, but the timing of this easing remains uncertain, as Volkswagen CEO Herbert Diess recently predicted that this year will not be easy either.