The automotive semiconductor revenue will reach $200 billion annually by the mid-2030s and surpass $250 billion by 2040, claims KPMG
Global technology experts have stated that in 2023, the semiconductor industry in the US will be surrounded by numerous conflicts and there will be several challenges. But, the unleashing of the US CHIPS Act by the Biden administration seems to be very optimistic for the industry’s growth. While the recent discussion regarding the launch of the European CHIPS Act worth 15 billion euros will provide a good balance for the semiconductor industry.
For instance, the German based global chip-making firm Infineon Technologies is now looking out for some companies for mergers and acquisitions, as per CEO Jochen Hanebeck. Although no specific company name has been pointed out, there are some hints about the mergers. As per a report of EDN, Infineon is looking for some companies that specialize in electromobility, autonomous driving, renewable energy, data centers, and the Internet of Things (IoT), and also startups that are well-financed and are deeply looking for some mergers.
Of late, the company has done its two important acquisitions. In order to provide automotive semiconductors, the company back in 2014 has acquired International Rectifier for $3 billion. Again in 2019, Cypress Semiconductor was purchased by the company for $10 billion to expand its presence in IoT silicon. When the global industry researchers mentioned that the semiconductor industry would witness a slump in growth in 2023, the German chip-maker has mentioned to invest billions on acquiring new semiconductor firms. As per the exclusive report of EDN, Infineon is tying its acquisition plans to boost growth in power, sensors, and artificial intelligence (AI).
Recently, research firm KPMG exclusively stated that the automotive semiconductor revenue will reach $200 billion annually by the mid-2030s and surpass $250 billion by 2040, whereas wireless communications, the sector's most important spearheader of revenue, slips into second place in the 2023 outlook. Several other international chip-makers are looking to increase their growth through mergers and acquisitions, and on the other hand, they are investing billions to augment their production capacities by opening new manufacturing units in several countries.