Strategy Analytics: Automotive Semiconductor Vendor Top Spot No Longer Attainable Through M&A

Focus on capturing capabilities to capitalize on automotive industry trends related to connectivity, electrification, autonomy, infotainment and mobility services

BOSTON–(BUSINESS WIRE)–The ability to create a credible gap between rivals through acquisition will be increasingly difficult for automotive semiconductor vendors with the market share ROI (return-on-investment) from M&A (merger and acquisitions) effectively coming to an end. The Strategy Analytics Powertrain Body Chassis and Safety (PBCS) service report, “From Supply Chain to Value Network – the Changing Face of Automotive Competitive Landscape Dynamics (http://sa-link.cc/1pV),” analyzes the largest and most significant mergers and acquisitions in the automotive industry, with particular focus on semiconductor vendors, as well as looking at some of the major Tier 1 activity.

The Renesas-NEC merger started the last decade, allowing Renesas Electronics to command the top spot for several years before NXP’s acquisition of Freescale changed the rankings in 2015. Moving into the next decade, Infineon’s acquisition of Cypress will again change the rankings at the top. With each of these deals, the resulting entity has been able to leapfrog rivals to the number one spot, but the ability to create a credible gap between rivals through acquisition will be increasingly difficult as the market share ROI from M&A exercises drops to zero.

“We shouldn’t expect the current round of M&A activity, e.g. ADI buying Maxim, to result in a demonstrable shift in the top tier of automotive semiconductor vendor share rankings.” notes Asif Anwar, report author and PBCS Service Director. “They do validate a focus on capturing capabilities to capitalize on automotive industry trends related to connectivity, electrification, autonomy, infotainment and mobility services,”

Mr. Anwar continued, “The transformation from an automotive supply chain to a value network is evidenced by OEMs (Original Equipment Manufacturers) looking to work directly with companies that can provide strategically vital capabilities, and this will be the focus for future M&A activity. Whether the transformation from an automotive supply chain to a value network becomes a permanent fixture will dictate which future partnerships, mergers, acquisitions and divestments create the next major seismic shift in the automotive competitive landscape.”

Source: Strategy Analytics, Inc.

#SA_Automotive

About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

For more information about Strategy Analytics

Powertrain Body Chassis and Safety (PBCS): Click here

Contacts

Report contacts:
European Contact: Asif Anwar, +44 (0)1908 423 635, aanwar@strategyanalytics.com
US Contact: Edward Sanchez, +1 617 614 0717, esanchez@strategyanalytics.com
China Contact: Kevin Li, +86 186 0110 3697, kli@strategyanalytics.com

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn

Sign-up for the Collision Repair daily e-zine and never miss a story –  SUBSCRIBE NOW FOR FREE!

Related Posts

Play
Heading layer
Play
Play
Play
previous arrow
next arrow
Slider

Recent Posts

Our other sites