Global auto chip market forecast to log solid growth

The global automotive chip market is expected to grow solidly over the next few years, driven by the rise of autonomous vehicles, a market tracker said Sunday.

According to IHS Technology, the worldwide market for chips used in vehicles is forecast to increase at an annual average rate of 5.5 percent over the next six years.

In particular, the annual growth rate of the market for chips used in so-called advanced driver assistance systems will likely reach a whopping 14.2 percent, it said.

ADAS refers to a new automotive technology that stops vehicles when it detects obstacles not seen by drivers. It also enables cars to get a clear front view so drivers can stay within their lanes and not go over the speed limit.

Among the semiconductors used in cars, sales of memory chips are projected to register the highest annual growth rate of 12.4 percent over the six-year period, IHS said.

South Korean chip giants Samsung Electronics Co. and SK hynix Inc. currently dominate the global memory chip market with a nearly 60 percent market share. (Yonhap)