STRATEGY ANALYTICS: Freescale Loses Lead in Automotive Semiconductor Market

Now Head-To-Head With Infineon in $18.4 Billion Marketplace
BOSTON--(Business Wire)--
The Strategy Analytics Automotive Electronics service report, "Automotive
Semiconductor Vendor 2008 Vendor Market Shares," reveals that Freescale`s
previously undisputed lead in the automotive segment has disappeared. Its share
now stands at 9.5%, head-to-head with its arch-rival, Infineon.

As an early entrant and innovator in the automotive semiconductor market,
Freescale has traditionally enjoyed a significant lead over its nearest
competitors. Freescale`s setback is because it derives more of its revenues from
the US automotive electronics market, which was the first region to feel the
shock waves of the global economic crisis, than Infineon or its other
competitors.

The credit crunch and declining consumer confidence triggered by the Wall Street
financial crisis hit US new vehicle sales and production first, resulting in
significant demand declines going into the fourth quarter of 2008. Strategy
Analytics` analysis shows Freescale was not alone, with almost all automotive
semiconductor vendors suffering reduced 2008 revenues compared to the previous
year.

According to Chris Webber, VP of the Strategy Analytics Global Automotive
Practice, "The first three quarters of 2008 actually provided good automotive
revenue growth for Freescale and other vendors; however this was totally wiped
out by the sharp downturn in the fourth quarter, resulting in global vendor
revenues falling by almost 5%. Vendors should plan for further declines in 2009,
but 2010 is expected to bring a return to growth."

"Although the short term outlook is bleak, there are significant opportunities
for automotive semiconductor vendors in the medium and longer term, as increased
electronics penetration is the only realistic way that the industry can meet
future environmental and safety requirements," added Ian Riches, Director,
Automotive Electronics Service.

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence
focused on opportunities and disruptive forces in the areas of Automotive
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Strategy Analytics
US Contact:
Mark Fitzgerald, +1 617-614-0717
mfitzgerald@strategyanalytics.com
or
European Contact:
Chris Webber, +44(0) 1908 423 641
cwebber@strategyanalytics.com

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