Core Viewpoint - The automotive chip market, initially expected to recover, is showing renewed pressure in Q2, with major chip manufacturers reporting a decline in growth rates compared to the previous quarter, indicating a setback in the recovery process [2][4]. Group 1: Market Performance - Major chip manufacturers like Texas Instruments, STMicroelectronics, and Infineon have reported a decline in automotive chip performance, with Texas Instruments experiencing a year-on-year growth of approximately 5% but a quarter-on-quarter decline in single digits [4]. - STMicroelectronics reported a 24% year-on-year decline in automotive business but a 14% quarter-on-quarter increase, indicating volatility influenced by specific customer decisions [5]. - Infineon also noted a 3% year-on-year decrease in automotive revenue but a 1% quarter-on-quarter increase, suggesting a slight improvement as customer inventory adjustments slow down [5]. Group 2: Supply and Demand Dynamics - The global automotive industry is still adjusting its inventory, with weak market demand and geopolitical factors impacting the supply chain [2][6]. - The forecast for global automotive sales in 2025 is approximately 94.7 million units, with a modest growth of 3.7%, and a potential decline in 2026, reflecting a slowdown in electric vehicle growth and persistent low demand for traditional fuel vehicles [6]. - The automotive chip market is facing structural differences in recovery, with power chips and high-end intelligent chips expected to recover first by late 2025, while general-purpose chips like MCU and PMIC may lag until late 2025 or early 2026 [9][10]. Group 3: Emerging Opportunities - The rise of intelligent driving technologies, such as Robotaxi and Robotruck, is expected to create new demand for automotive chips, particularly in AI and high-performance computing [10][11]. - The increasing penetration of electric vehicles is projected to boost the demand for power chips, with a forecasted penetration rate of 25% by 2025, leading to a gradual alleviation of supply shortages [9]. - Domestic chip manufacturers in China are gaining traction in the automotive chip market, particularly in the mid-to-low-end segments, but still face challenges in high-end chip production [11].

Core Viewpoint - The automotive chip market, initially expected to recover, is showing renewed pressure in Q2, with major chip manufacturers reporting a decline in growth rates for automotive chips, indicating that the recovery process is still uncertain [1][2]. Group 1: Market Performance - Major chip manufacturers like Texas Instruments, STMicroelectronics, and Infineon have reported mixed results, with Texas Instruments experiencing a 5% year-on-year growth in automotive chips but a low single-digit decline quarter-on-quarter, indicating that the automotive sector is lagging behind other markets [2][4]. - STMicroelectronics reported a 24% year-on-year decline in automotive business but a 14% quarter-on-quarter increase, suggesting a potential turning point despite the overall negative trend [4][5]. - Infineon also saw a 3% year-on-year decrease in automotive revenue but a 1% quarter-on-quarter increase, indicating slight improvement as customer inventory adjustments slow down [5]. Group 2: Supply and Demand Dynamics - The automotive chip market is facing structural differences in supply and demand, with a forecasted global automotive sales growth of only 3.7% in 2025, and a potential decline in 2026, leading to reduced chip procurement from automakers [6]. - The market is experiencing a supply-demand imbalance due to increased chip production capacity and weak demand, resulting in price wars among manufacturers [6][7]. - The shift in demand for electric vehicles (EVs) and hybrid models is affecting the overall chip procurement, with traditional fuel vehicle demand remaining low, which delays the recovery of general-purpose chips [7][8]. Group 3: Future Outlook - The recovery of different automotive chip categories will vary, with power chips and high-end intelligent chips expected to recover first by late 2025, while general-purpose chips like MCU and PMIC may not recover until late 2025 or early 2026 due to high inventory levels [7][8]. - The introduction of advanced driver-assistance systems and new business models like Robotaxi is expected to drive demand for automotive AI chips, but significant impacts on the overall market may not be felt until after 2025 [8][9]. - China's automotive chip market is growing rapidly, with domestic companies gaining market share in lower-end chips, but still lagging in high-end chip production, which relies heavily on foreign technology [9].