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December 28, 2006

In-car semiconductor market to hit $5B by 2013

Global semiconductor demand from OEM and aftermarket audio/video infotainment systems is expected to grow from $2.9 billion in 2005 to $5 billion by 2013, with emergency-call and GPS systems growing the fastest, predicts Strategy Analytics Inc., a global research and consulting firm.

New digital broadcasting technologies such as satellite radio, compressible file formats from “soft content” sources and interfacing with portable music players and communications devices are creating new design-in opportunities for semiconductor vendors, according to Strategy Analytics’ Chris Webber, VP in the Global Automotive Practice.

Broader use of emergency call (e-call) telematics in Europe is expected to drive up demand up to 2013, with a compounded average annual growth rate of 16.3 percent compared to audio/video CAAGR of 2.5 percent. However, audio and video entertainment will continue to constitute the bulk of demand. Navigational and e-call technologies, a $7 million market in 2005, will reach $2.3 billion by 2013, Strategy predicts, while audio/video, a $2.2 billion market in 2005, will reach $2.7 billion.

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