During 2007 we continue to see growth and consolidation in Asia for automotive electronics design, manufacturing, and semiconductor component procurement. In the design sector, India is rapidly gaining qualification as automotive design outsourcing partners from device-level system design, through to complete subsystem-design competence with companies like KPIT-Cummins, HCL, and TCS, emerging as leading players consolidating technology resource expertise in India within this region.
During 2008 we expect to see continued advances in design for the development of next-generation active safety auto electronics by Indian outsourcing partners. From a manufacturing perspective, as the PC markets and consumer electronics industries approach maturity and these industries become saturated, Asian OEMs/ODMs have responded by establishing themselves in the automotive aftermarket electronics business on non-safety/mission critical automotive electronics application markets such as car audio, car navigation systems, and car alarm and security electronics.
Asia has led global manufacturing volumes in car audio systems for many years and in 2006 emerged as the world capital region for the manufacture of car navigation systems. As a result, Asia has rapidly established itself an important region for the consumption and procurement of semiconductor devices for automotive electronics.
Two concurrent trends will positively impact market trends in Asia during 2008: anticipated volume production growth within the BRIC countries – especially in India and China – and the technology migration to the next-generation automotive electronics. As the global automotive industry faces pressure to be more competitive, it is only inevitable that India and China will benefit from its cost-advantage status.
