With growing demand for safer, cleaner and smarter vehicles, electronic control units (ECUs) are playing an increasingly vital role in the automotive industry. Consequently, it is projected that global ECU sales will reach $211B in 2030, increasing at a compound annual growth rate (CAGR) of 5% from $122B in 2018. This rapid acceleration follows a strong performance in 2018, with revenue increasing 6.9% from $114B in 2017. Although their function is largely hidden from motorists, ECUs are vital in keeping vehicles on the road, and managing automotive subsystems including the engine, power-steering and transmission. Increased ECU usage mirrors the...

Q1 2019 saw the global chip market post its worst quarterly performance in a decade, with the world’s top 10 semiconductor suppliers all suffering year-on-year sales declines. Global chip revenue fell to $101.2B, down by 12% compared to Q1 2018. This represents the largest year-on-year decrease since Q2 2009. Memory chips were largely responsible for the plummet in sales; removing their impact, sales would have fallen by just 4.4% during Q1. However, additional factors contributing to the market's poor performance include falling demand in major markets and a rise in excess inventory. Samsung of South Korea suffered...

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One part of the electronics market that seems to be defying recent reports of a slowdown is the high-brightness LED market. Analysts at Technavio forecast that it will grow more than 7% by 2021. A key driver is the far lower energy requirements of LED lighting; it typically consumes 75% less energy than an incandescent bulb, and energy-efficiency certification programs are helping to promote this. Such energy savings save money and help organisation to reduce their carbon footprint. Another factor which is promoting the growth is reduction in manufacturing costs, bringing prices down. Key vendors are: Cree, GE Lighting, LG...

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The background to the tariff war between the US and China is complex. Since July 2018 a series of tariffs have been levied by the US on a wide range of Chinese goods, and China has retaliated with its own tariffs. The tariffs were initiated by the Trump administration for political and economic reasons (such as opening parts of the Chinese market to American companies), but one key factor behind them was the concern about intellectual property (IP) theft in China. In general, the technology industry in the US supports IP protection and fair trade, though several trade bodies (such...

2018 ended with a poor quarter for semiconductor sales, 8.2% down on Q3 sales. The outlook for Q1 2019 looks even worse, with most major semiconductor companies expecting declines greater than 10%. Key factors driving the decline are weak end user demand for electronics devices, allied with inventory adjustments at manufacturers as they reposition production to cope with the lower demand. Part of the underlying reason for this decline is a slowdown in world GDP and major economy growth. The IMF expect world GDP growth to slow from 3.7% in 2018 to 3.5% in 2019; the impact...