How strong are China’s automotive semiconductor companies?
In China, smart and automated vehicles have developed rapidly in parallel with the electrification of the automobile. As the car market has matured, consumer needs have diversified and consumers have become more discerning about comfort and convenience, so new functions are being integrated into digital cockpits one after another.
The digital cockpit market continues to expand at a brisk pace due to a combination of an environment conducive to innovation, with many ventures emerging as electrification progresses, and a Chinese consumer base that is receptive to new technologies. In addition, China has applied for the largest number of patents in the world for digital cockpits, and trends related to digital cockpits by Chinese companies are attracting attention worldwide.
The rapid expansion of the EV market in recent years has also been influenced by the evolution of digital cockpits, which offer more convenient functions, and the fact that the current NEV purchase subsidy will end at the end of 2022, which could lead to a decline in consumers’ willingness to purchase EVs, further increasing the importance of the digital The importance of digital cockpits as a key to EV sales is expected to increase further in the future. Chinese OEMs are actively entering overseas markets with EVs as a breakthrough, for example by exhibiting a number of EVs at the Indonesia Motor Show in August 2022 and the Paris Motor Show in October of the same year. The effect of this is increasing the likelihood of full-scale overseas expansion of digital cockpit-related technologies and suppliers. For Japanese OEMs, China’s development in the EV and smart sector poses a threat, but also an opportunity to gain suggestions from the transformation. Opportunities for Sino-Japanese company collaboration are also increasing.
Focusing on the smart functions of digital cockpits, excluding ADAS and automated driving, the report analyses and describes technological trends by component; with regard to OEMs, the focus is mainly on Chinese suppliers, where partnerships and actual vehicle installation status are important; Chinese suppliers such as Sensetime and Beijing Eastern (BOE), which are indispensable for digital cockpits, are also included. The report also covers Chinese component suppliers such as Sensetime and Beijing Eastern (BOE), which are indispensable for digital cockpits, as well as the Chinese operations of global component manufacturers such as Continental and Faurecia.