Korean media: The giant transformation of the automotive semiconductor market, Chinese enterprises rise collectively! On June 4th, the South Korean newspaper "Chosun Ilbo" published an article stating that while global automotive semiconductor giants are mired in a slump due to weak demand, the influence of China's automotive semiconductor companies is growing stronger. The industry highly evaluates the potential of China's automotive semiconductor enterprises and believes that the market landscape may undergo significant changes in the near future. The financial report of the first quarter of 2025 from Infineon, the world's largest automotive semiconductor company, shows that the market dominance of global power semiconductor leaders is weakening. Power semiconductors, which control energy efficiency, are key components determining the driving range of electric vehicles and the power consumption of household appliances. According to data from market research firm Omdia, Infineon's share of the power semiconductor market last year was 17.7%, down 2.9 percentage points from the previous year. The market shares of Onsemi and STMicroelectronics, ranked second and third respectively, also decreased by 0.5 percentage points and 1 percentage point, reaching 8.7% and 7%. Chinese enterprises are vigorously increasing their market share in the power semiconductor sector. Hangzhou Silan Microelectronics, a Chinese integrated device manufacturer, ranks sixth globally with a 3.3% share of the global power semiconductor market. BYD, one of the leading global electric vehicle enterprises from China, also ranks seventh in the power semiconductor market with a 3.1% share. This marks its first entry into the "top ten" of this market. As China's electric vehicle industry strengthens its "self-sufficiency" supply chain, traditional power semiconductor companies are struggling due to the slowdown in the global electric vehicle market. Until two years ago, BYD was purchasing power semiconductors from foreign companies, but since last year, BYD has fully operated its electric vehicle power semiconductor factory. While the performance of Chinese enterprises continues to grow, traditional giants are struggling to break free from their slump. Infineon's operating profit for the first quarter this year was 318 million euros, a decrease of 36% compared to the same period last year. Infineon has revised downward its earnings expectations for this year and reduced its overall investment scale. Onsemi's operating loss for the first quarter this year was $573 million, and STMicroelectronics' operating profit plummeted by the same period, reaching only $3 million. The market generally predicts that China's automotive semiconductor companies will take the lead in the future. It is expected that the size of China's automotive semiconductor market will grow at an annual rate of over 25% from last year's 120 billion yuan RMB, breaking through 300 billion yuan RMB by 2030. However, the self-sufficiency rate of China's automotive semiconductors is still less than 15%. The domestication rate of high-performance system-on-chip (SoC) and microcontroller unit (MCU) is less than 5%. Under this situation, China is making every effort to provide support, aiming to increase the domestic procurement rate of automotive semiconductors to 25% this year. A South Korean insider stated, "In the Chinese market where demand for automotive semiconductors is strong, competition with local Chinese enterprises is becoming increasingly fierce, making it difficult to ensure profitability. Companies like Infineon are strategically pursuing cooperation with competitors such as BYD, but with the acceleration of China's semiconductor autonomy, they face pressure to secure market share and maintain technological competitiveness." Original source: https://www.toutiao.com/article/1834000297267779/ Disclaimer: The article solely represents the author's own views.