Core Insights and Recommendations
The resonance of automotive electrification and intelligence will lead to a simultaneous increase in volume and price for automotive MCUs.
Five Key Factors:
With the rapid development of automotive electrification and intelligence in China, domestic automotive MCU companies continue to benefit, which is the largest source of market growth for MCUs.
The demand for MCUs in smart cars is at least 4.3 times that of traditional fuel vehicles, leading to strong demand for automotive MCUs.
The performance requirements for MCUs in electric and smart vehicles are continually increasing, with the proportion of high-end automotive MCU products further rising, driving an overall increase in ASP for the MCU industry.
China is the largest demand market for automotive MCUs, and the industry has considerable growth prospects; however, the self-sufficiency rate of automotive MCUs in China is less than 5%, indicating significant room for domestic alternatives.
Local MCU manufacturers are actively laying out automotive-grade products, and their performance is gradually maturing, accelerating the market penetration of domestic automotive MCU products and gradually entering the high-end market.
Recommended companies to watch: GigaDevice, Guoxin Technology, Zhongying Electronics, and NavInfo.
Risk Warnings
The penetration rate of new energy vehicles is lower than expected.
US-China trade friction may cause domestic chip manufacturers to encounter obstacles in IP licensing and wafer manufacturing.
The certification of automotive-grade MCUs is difficult and time-consuming, presenting uncertainties.
The downstream automotive market may perform below expectations.
The development of autonomous driving technology may fall short of expectations.
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