KPMG predicts sharp acceleration in the speed of growth in worldwide automotive semiconductor sales over the next two decades. The prediction comes as Congress considers approving billions in incentives to attract more chip production in the U.S.
predicted the share of the market for new electric vehicles would grow from about 5% this year to approximately 40% by 2031.“It's a perfect storm,” said Silberg when taking the trio of factors into account. “All three areas are going to rise just because of demand from consumers and technology.”
While demand is high and growing, Silberg expects the semiconductor industry continue to struggle to meet it, at least in the short-term, declaring, “There's a hundred phones in a car or more and that number is going up. Demand will be met in some point in time but not now because they can't get the chips.”
But that's not enough to allay the current shortage or prevent insurance against production interruptions in the event of future deficiencies.
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