Freescale takeover makes NXP the largest automotive chip vendor

Freescale takeover makes NXP the largest automotive chip vendor

Market news |
By Jean-Pierre Joosting

Supplier consolidation and currency movements are the key factors influencing changes in the vendor share ranking in 2015. NXP completed the acquisition of Freescale Semiconductor in early December 2015, propelling the combined company to the top of the share ranking, with an estimated 14.5 percent. Similarly, Infineon’s acquisition of International Rectifier in January 2015 moves it ahead of Renesas to number two, with an estimated market share of 10.1 percent. Having been the largest semiconductor supplier to the OE automotive sector for each of the last five years, Renesas is thus relegated to third position in the vendor share ranking in 2015, with an estimated 9.5 percent share.


Colin Barnden, Principal Analyst at Semicast Research, commented “The combination of NXP and Freescale creates a formidable force, not just in automotive semiconductors but in other areas such as industrial, medical and microcontrollers. It will now almost certainly require the merger of two other leading suppliers to move NXP from the head of the automotive vendor share rankings.”

Changes in the value of the Euro and Yen relative to the US Dollar have also impacted the vendor share ranking. Compared with 2014, the Euro was an average of sixteen percent weaker against the US Dollar in 2015, while the Yen was almost thirteen percent weaker.

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