Cypress Acquisition Will Propel Infineon To Automotive Semiconductor Leadership In 2020 (NASDAQ:CY)

Sales of international combustion engine autos and electric vehicles will resume positive growth in 2021.

Although not the largest end-market for semiconductors, automotive has been one of the fastest growing. There are several reasons:

  • The increase in unit sales of autos as more safety and convenience features are added to a car
  • The increase in semiconductor content with each model of autos
  • The increase in semiconductor content in moving from conventional to EVs
  • The increase in semiconductor content with Advanced Driver Assistance Systems (ADAS)

That was the thinking until early 2019 when the world economies were negatively impacted by the U.S.-China Trade issues, bringing many Asian and European countries to the brink of recession. The other shoe fell in 2020 with COVID-19. As a result, unit sales of conventional autos dropped and EV sales tumbled in China and the U.S. The COVID-19 pandemic also increased headwinds for ADAS. Most new

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