As the main control chip of intelligent products, MCU is widely used in automobiles (35%), industry (24%), consumer electronics (18%), and other fields. Because automotive electronics require chips to have higher reliability, stronger processing power, higher performance, and larger storage space, etc.; consumer electronics such as smart wear require MCU to meet the needs of lightweight and miniaturization, and the Internet of Things requires low Power consumption and wireless technology, etc. Therefore, the future development of MCU products will be biased toward high performance, low power consumption, high stability, and high integration.
High-performance MCUs have the characteristics of high operating frequency and large-capacity storage. This type of MCU has faster computing speed and stronger storage capacity. RAM and CPU directly exchange data, mainly storing temporary data, which can be quickly read and written. The larger the RAM capacity, the smoother the MCU runs.
Source: Internet
Complex working environments such as high temperature, low temperature, high humidity, and multiple electromagnetic interferences often require high-reliability MCUs. Its design needs to master various reliability design technologies such as system, clock, storage, I/O port, anti-interference, high-temperature resistance design, etc., so that it can adapt to a wide operating temperature range and effectively resist ESD, EFT, Latch-up, and other electrical characteristic tests And power noise, RF interference, power fluctuations and other noise interference. Automotive MCUs also need to meet AEC-Q100 reliability testing standards.
Highly integrated MCU integrates ADC, DAC, operational amplifier, comparator, PGA, etc., providing more resources and reducing MCU peripheral circuit components. Highly integrated MCUs also put higher requirements on the ability of enterprises to develop various digital and analog IPs.
High security is mainly to identify and prevent vehicle safety risks caused by systematic failures and random hardware failures.
The low-power MCU can reduce the power consumption level of the chip, effectively improve the durability of the chip, and prolong the service life of the terminal product.
Automotive MCU
Leaders in the automotive space are Renesas Electronics, NXP, and Infineon. Renesas Electronics has formed close cooperation with well-known Japanese car companies (Honda, Toyota) in the development process to enhance the competitiveness of automotive electronic MCU products through stable supply and generation selection. After NXP acquired Freescale, it strengthened its product line in the automotive field, and Infineon also gradually improved its automotive electronics MCU product line after acquiring Cypress.
Infineon's 2023Q3 automotive business reached a record high of 2.129 billion euros, mainly due to the growth of microcontrollers. Renesas Electronics' automotive business in 2023Q2 increased by 0.7% month-on-month and 3.4% year-on-year, accounting for 46%, reaching 169.4 billion yen, ranking second in historical quarterly revenue. NXP's automotive business has revenue of US$1.87 billion in 2023Q2, a year-on-year increase of 9% and a month-on-month increase of 2%, which is close to the high end of the company's guidance. Demand from the automotive business in Q3 will continue to be strong, with a few supply shortages continuing until the end of the year. In 2023Q2, STMicroelectronics achieved revenue growth in two sub-product divisions, Automotive Products and Discrete Devices (ADG), of which operating profit increased by 73.8%, totaling US$624 million. Operating margin was 31.9%, up 7.2% year-over-year.
Industrial MCU
The application of MCU in the industrial field mainly includes industrial robots, stepping motors, robot arms, instruments and meters, industrial motors, energy gateways, etc., to realize calculation, control, signal collection, and data transmission.
Microchip Technology and STMicroelectronics occupy a dominant position in the industrial field. The main application field of STMicroelectronics 32-bit general-purpose MCU is industrial scenarios. It plans to further increase the proportion of industrial MCUs from 52% in 2021 to 65% in 2026. Microchip Technology has gradually formed a comprehensive product line in the field of industrial control after the acquisition of Atmel.
Renesas Electronics' business in industry, infrastructure, and Internet of Things in 2023 Q2 decreased by 6.6% year-on-year and increased by 4.1% month-on-month. NXP's industrial and Internet of Things business Q2 revenue was US$578 million, a year-on-year decrease of 19% and a quarter-on-quarter increase of 15%. Infineon's decarbonization-related businesses in renewable energies performed well, and given the structural dynamics in these markets, their industrial drives business will continue to grow strongly.
Consumer MCU
As consumers' demands on electronic products become more and more diversified, the application of MCU is also more and more extensive. MCU can be installed in smartphones, wearable devices, IoT devices, home appliances, and other products. According to statistics from Global Market Insights, the global consumer electronics market will exceed US$1 trillion in 2021, and the CAGR is expected to exceed 8% from 2021 to 2027.
In the field of consumer electronics, Microchip 8-bit MCU occupies a larger market share with its better performance. STMicroelectronics has a comprehensive layout in the field of the Internet of Things and consumer electronics, including industrial gateways, telecommunications equipment, home automation, and other products. In response to the market for consumer MCUs, Infineon said that their computing, consumption, and communication-related businesses have maintained relatively good performance in a challenging environment. In order to improve this situation, we need to carry out some inventory digestion and wait for the recovery of terminal consumption demand. Renesas Electronics believes that the PC and consumer electronics fields have bottomed out and may see some modest growth from the third quarter of 2023.