In 2024, the automotive semiconductor industry will face a revenue shortage as Tier 1 and OEM customers digest their inventory.
These inventories are built up because of the high demand that built up when semiconductor components were in short supply between 2020 and 2022. However, the slowdown in electric vehicle demand in the second half of 2023 further intensifies in 2024 and spreads to the entire automotive industry. Although the long-term trend in automotive semiconductor demand remains, early revenue forecasts for the automotive semiconductor industry in 2024 show that year-on-year growth will flatten until 2025.
The automotive semiconductor supply chain will face several months of "false slowdown" as customers digest inventory and end-market demand is weak. However, the fundamentals for increasing semiconductor content per vehicle remain strong in the long term.
Qualcomm and Micron lead the Automotive Semiconductor Index, while ADI, Infineon, Onsemi, Texas Instruments and NXP also improved their respective Automotive Semiconductor Index scores.
