This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
Automotive White Paper, Vol.2, Powered by Yole Group – Shifting gears!
KEY TAKEAWAYS
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The automotive semiconductor market will soar from $68 billion in 2024 to $132 billion in 2030, growing at a 10% CAGR, five times faster than the automotive market itself.
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The top five players control half the market, yet emerging challengers are reshaping competition.
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Infineon Technologies leads globally with more than $8 billion in automotive revenue in 2024, followed closely by NXP and STMicroelectronics.
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U.S. firms dominate in advanced computing, analog, and memory, holding 36% market share.
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Chinese suppliers, backed by national policies, are advancing rapidly in cockpit, ADAS, and power SiC.
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OEMs, including Tesla, BYD, and Nio, are integrating vertically, disrupting traditional supply chains.
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TSMC and Samsung maintain control of sub-16nm automotive nodes, fully allocated through 2027.
Yole Group today announces the release of its Automotive White Paper, Vol. 2, part of the 2025 Yole Group White Paper Collection. Following the success of Volume 1, this latest edition dives deeper into the transformative forces shaping the future of automotive semiconductors.
While the global automotive market is set to grow at a modest 2% CAGR between 2024 and 2030, the semiconductor segment is surging dramatically, increasing from $68 billion to $132 billion over this period. This divergence underscores the central role of semiconductors as vehicles evolve into software-defined, connected, and increasingly autonomous platforms.
The white paper examines 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 example, is making LiDAR a differentiator in its domestic EV race.
The global competitive landscape is shifting. U.S. and European players continue to leverage scale, IP depth, and established OEM relationships to defend leadership. Meanwhile, Chinese companies, fueled by national support, are aggressively building capabilities to secure a self-sufficient semiconductor ecosystem.
At the same time, OEMs like Tesla, BYD, and Nio are accelerating vertical integration, further disrupting traditional supply chains and reshaping how value is captured across the ecosystem. Yet challenges loom: geopolitical risks, AI-driven compute requirements, and the architectural shift toward centralized vehicle platforms will test the resilience of the entire supply chain.
“Automotive semiconductors are no longer a hidden enabler. They are the foundation of future mobility. Yole Group’s Automotive White Paper, Vol.2, shows how technological choices and strategic bets in the next five years will define the winners and losers of this industry.”
Pierrick Boulay
Principal Analyst, Automotive Semiconductors, Yole Group
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 automakers are critical.
“The global race is accelerating. While incumbents hold strong in ADAS and autonomous compute, challengers must prove reliability to earn trust. The winners will be those who align technology innovation with OEMs’ evolving roadmaps.
Yu Yang
Principal Analyst, Automotive Semiconductors, Yole Group
Yole Group’s Automotive White Paper, Vol. 2, offers a comprehensive, independent analysis of the forces shaping the next phase of automotive semiconductors. It reflects the group’s expertise in technology, strategy, and supply chain dynamics, providing valuable insights for decision-makers across the ecosystem.
This publication is part of the Yole Group 2025 White Papers Collection, which will soon feature additional volumes, including a dedicated AI-focused series covering semiconductors in power electronics, photonics, memory, and computing.
Download the full Automotive White Paper, Vol. 2, on Yole Group’s website and explore the future of mobility through the lens of semiconductor innovation.
Stay tuned on yolegroup.com!
ACRONYMS
- CAGR: Compound Annual Growth Rate
- ADAS: Autonomous Driving Assistance System
- SiC: Silicon Carbide
- OEM: Original Equipment Manufacturer
- EV: Electric Vehicle
