Chip, chip, hurray! – Could semiconductor players become the new Tier 1s?

In the face of disruptive technology, the automotive semiconductor market is becoming increasingly attractive – to incumbents as well as to potential new entrants. By Dr. Michael Alexander, Dr. Wolfgang Bernhart and Jonas Zinn of Roland Berger GmbH

Accounting for 29% of the global light vehicle component market, electronics and mechatronics is one of its major segments. This segment is expected to grow from around US$270bn in 2015 to more than US$400bn in 2025, increasing its share to 34%. Depending on their role in the value chain, there are four different types of players in this market segment:

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