Gartner Dataquest Says Worldwide Automotive Semiconductor Market is Forecast to Grow 7 Percent in 2001
Motorola Continued to be the Market Leader Last Year
Egham, United Kingdom, September 24, 2001 - While the worldwide semiconductor market is expected to decline 26 percent in 2001, the worldwide automotive semiconductor market is forecast to grow 7 percent this year, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

Much of the growth over the next few years will come from developments that enhance the driving experience - such as telematics and real-time driver information systems - as well as in-car multimedia terminals for game consoles, Internet access, and real-time travel guides and directions.

"With the increasing personalization and connectivity of the car, wireless and mobile computing technologies will positively impact the automotive semiconductor market," said Mike Williams, principal analyst for Gartner Dataquest's worldwide semiconductor group. "Vendors that can leverage this expertise in these areas will be better positioned to succeed."

Motorola maintained its lead position in the worldwide automotive semiconductor application market in 2000, with more than 10 percent market share. Infineon Technologies relinquished its No. 3 position to ST Microelectronics, which had an outstanding year with efforts to increase sales in digital radio and high-growth telematic applications achieving success (see Table 1).

Table 1
Top Five Worldwide Automotive Semiconductor Vendors by Revenue Estimates
(Millions of U.S. Dollars)

2000 Rank Company 2000 Revenue 2000 Market Share (%) 1999 Revenue 1999 Market Share (%) 1999-2000 Growth (%)
1 Motorola 1,409 10.8 1,299 12.3 8.5
2 NEC 836 6.4 708 6.7 18.1
3 ST Microelectronics 807 6.2 558 5.3 44.6
4 Infineon Technologies 718 5.5 613 5.8 17.1
5 Philips 596 4.6 543 5.2 9.7
  Others 8,712 66.6 6,802 64.6 28.1
  Total Market 13,078 100.0 10,523 100.0 24.3
Source:Gartner Dataquest (September 2001)

"Vendors must exploit the new opportunities associated with digital electronic technologies," said Adriana Blanco, analyst for Gartner Dataquest's worldwide semiconductor group. "Vendors that are best able to integrate some of these features will be better positioned to benefit from the growth opportunities presented in telematics, body control electronics, and safety and convenience applications."

Additional information on this market is available in the Gartner Dataquest Perspective "Worldwide and Regional Automotive Semiconductor Application Market Share Rankings, 2000: Motorola Still Tops." This document provides top-tier market share results by region, as well as a worldwide forecast.

This research is produced by Gartner Dataquest's Semiconductors Worldwide group. This research group combines memory, microcomponents, logic, ASIC, analog, discrete device, RF and optical segments into a complete industry picture. Products, suppliers, startups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To subscribe to this service, please call 408-468-8000. Reports can be purchased on the Internet at www.gartner.com.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com.

Contact:
Christy Pettey
408-468-8312
christy.pettey@gartner.com