EV (Electric Vehicle) Chips Market Trends

Q: What value is the EV (Electric Vehicle) Chips market expected to touch by 2033

The global EV (Electric Vehicle) Chips market is expected to reach USD 1240.49 Million by 2033.

Q: What is CAGR of the EV (Electric Vehicle) Chips market expected to exhibit by 2033?

The EV (Electric Vehicle) Chips market is expected to exhibit a CAGR of 4.3% by 2033.

Q: Which are the top companies operating in the EV (Electric Vehicle) Chips market?

Infineon,NXP,Renesas,Texas Instrument,ST,Onsemi,Microchip,Micron,Samsung,SK Hynix,Winbond,Western Digital,Wingtech,Kioxia,GigaDevice,ISSI,Analog Devices,Nanya,SemiDrive,Horizon Robotics,Powersemi

Q: What was the value of the EV (Electric Vehicle) Chips market in 2024?

In 2024, the EV (Electric Vehicle) Chips market value stood at USD 852.76 Million.

EV (Electric Vehicle) Chips Market Overview

The EV (Electric Vehicle) Chips Market size was valued at USD 852.76 million in 2024 and is expected to reach USD 1240.49 million by 2033, growing at a CAGR of 4.3% from 2025 to 2033.

The EV (Electric Vehicle) chips market is experiencing significant growth, driven by the increasing adoption of electric vehicles worldwide. In 2023, the Asia-Pacific region accounted for approximately 50% of the global EV chips market, followed by North America at 25% and Europe at 20%. This growth is attributed to the rising demand for electric vehicles, advancements in semiconductor technology, and supportive government policies promoting clean energy transportation.

Key Findings

Driver: The primary driver of the EV chips market is the increasing demand for electric vehicles, leading to a surge in the need for advanced semiconductor components.

Top Country/Region: China leads the market, with the Asia-Pacific region holding a dominant share of approximately 50% in 2023.

Top Segment: Power semiconductors are the top segment, accounting for 40% of the market share in 2023.

EV (Electric Vehicle) Chips Market Trends

The EV chips market is witnessing rapid technological advancements driven by the growing complexity of electric vehicles and increasing demand for energy efficiency. As of 2024, silicon carbide (SiC) chips have gained substantial traction, with SiC power devices accounting for nearly 25% of all power semiconductor shipments in the EV sector, up from just 10% in 2020. SiC’s superior electrical properties allow for higher switching frequencies and lower energy loss, which directly translates to increased EV driving range and faster charging times. Moreover, gallium nitride (GaN) chips are emerging as complementary technologies, with global GaN power device shipments expected to surpass 100 million units by 2025, reflecting their growing adoption in onboard chargers and DC-DC converters. Another significant trend is the integration of Artificial Intelligence (AI) and machine learning capabilities into EV chips. This development is fueling growth in advanced driver assistance systems (ADAS) and autonomous driving features. The number of AI-enabled automotive chips shipped worldwide rose to over 60 million units in 2023, representing a near doubling compared to 2019 figures. These chips facilitate real-time data processing from sensors, cameras, and radar systems, enhancing safety and driving experience. The shift toward domain controller architectures and zonal vehicle control is influencing chip demand as well. Automakers are replacing traditional distributed Electronic Control Units (ECUs) with centralized computing platforms, which require powerful microcontrollers and high-bandwidth communication chips. In 2023, domain controller deployments in new EVs reached 40% of the total electric vehicle production, a trend expected to continue growing, driving demand for high-performance computing chips and memory.

In addition, regulatory mandates worldwide pushing for lower vehicle emissions and enhanced safety standards are accelerating the adoption of chips that comply with stringent functional safety certifications such as ISO 26262 ASIL-D. The production volume of functional safety chips specifically designed for EV applications grew by 30% between 2021 and 2023. This regulatory pressure also fosters innovation in sensor chips, which increased shipments by 18% in 2023, facilitating improved monitoring of battery health and vehicle surroundings. Finally, supply chain resilience and localization of semiconductor manufacturing have become crucial. Regional governments, especially in Asia-Pacific and North America, are heavily investing in domestic chip production to reduce dependency on external suppliers. These initiatives have led to the commissioning of multiple new fabs capable of producing automotive-grade chips with advanced node technologies such as 28nm and below, meeting the rising demand for EV semiconductor components. These market trends collectively underscore a dynamic landscape where technological innovation, regulatory requirements, and strategic supply chain management are pivotal in shaping the future of EV chips.

EV (Electric Vehicle) Chips Market Dynamics

DRIVER

Rising demand for electric vehicles.

The global push towards sustainable transportation is leading to increased EV adoption. In China, the production of battery-electric vehicles reached 2.9 million units in 2021, a 166% increase from the previous year. This surge necessitates a higher volume of semiconductor components, including power chips, sensors, and microcontrollers, to manage various EV functions.

RESTRAINT

Demand for refurbished equipment.

The preference for refurbished or legacy semiconductor equipment can hinder the adoption of advanced chips. STMicroelectronics reported a forecasted decline in sales due to weak demand for legacy semiconductors used in cars and industrial equipment, projecting a 28% year-on-year drop in revenue for the first quarter of 2024.

OPPORTUNITY

Growth in personalized medicines.

While not directly related to EVs, the semiconductor industry's advancements in personalized medicine technologies can spill over into automotive applications. The development of chips for precise control and monitoring can enhance EV performance and safety features.

CHALLENGE

Rising costs and expenditures.

The semiconductor industry faces challenges related to increasing production costs. For instance, STMicroelectronics plans to invest between $2 billion to $2.3 billion in net capital expenditures in 2025, compared to $2.53 billion in 2024. Such expenditures can impact profitability and pricing strategies.

EV (Electric Vehicle) Chips Market Segmentation

The EV chips market is segmented by type and application, each playing a crucial role in the functionality of electric vehicles.

By Type

Computing Chip: Essential for processing data and managing vehicle operations. The demand for computing chips is increasing with the integration of AI and autonomous driving features.
MCU Function Chip: Microcontroller units (MCUs) are vital for controlling various vehicle systems. Renesas Electronics, a leading MCU supplier, holds the second-highest sales in Japan as of 2024.
Power Chip: Power semiconductors are critical for energy conversion and management in EVs. They held the largest market share at 40% in 2023.
Driver Chip: These chips control the operation of power devices. Their demand is growing with the increasing complexity of EV powertrains.
Sensor Chip: Sensors are essential for monitoring various parameters. They accounted for 35% of the market share in 2023.
Analog Chip: Analog chips process real-world signals. They represent 15% of the auto chip market.
Functional Safety Chip: These chips ensure the safe operation of vehicle systems, crucial for meeting safety standards.
Power Supply Chip: They manage the distribution of power within the vehicle, ensuring efficient energy use.
Memory Chip: store data for various applications. They make up 20% of the auto chip market.
Communication Chip: These chips enable connectivity within the vehicle and with external networks, supporting features like infotainment and telematics.

By Application

Power Control: Manages the distribution and conversion of electrical energy. Power semiconductors are integral to this function, holding a 40% market share in 2023.
Battery Management: Ensures optimal battery performance and longevity. Advanced chips monitor and control charging and discharging processes.
In-Vehicle Infotainment System: Provides entertainment and information to passengers. The demand for high-performance chips is growing with the integration of advanced features.
Advanced Driver Assistance Systems (ADAS): Enhances vehicle safety through features like lane-keeping and collision avoidance. Sensor chips are crucial here, accounting for 35% of the market share in 2023.
Others: Includes applications like body control and lighting systems, which also rely on various semiconductor components.

EV (Electric Vehicle) Chips Market Regional Outlook

The EV chips market exhibits varying dynamics across different regions.

North America

accounted for approximately 25% of the global EV chips market. The region's growth is driven by stringent emission regulations, government incentives, and increasing consumer awareness about the benefits of electric vehicles. The United States and Canada are witnessing significant growth in the adoption of electric vehicles, supported by investments in EV infrastructure and advancements in semiconductor technology.

Europe

holds around 20% of the global EV chips market as of 2023. The region's market growth is driven by stringent emission regulations and government incentives to promote electric vehicle adoption. Countries like Germany, France, and the United Kingdom are leading the way in electric vehicle adoption, with significant investments in electric vehicle manufacturing and charging infrastructure. The European Union's focus on achieving carbon neutrality by 2050 is driving the demand for electric vehicles and, consequently, EV chips.

Asia-Pacific

dominates the EV chips market, accounting for approximately 50% of the global market in 2023. The region's dominance is attributed to its large population base, improving economic conditions, and supportive government initiatives aimed at promoting electric vehicle adoption. China, in particular, is a major player in the EV market, with substantial investments in electric vehicle manufacturing and battery technology. The country's focus on reducing air pollution and dependency on fossil fuels is driving the demand for electric vehicles and, consequently, EV chips.

Middle East & Africa

accounted for 5% of the global automotive electronics chips market in 2023. While the market is still emerging, there is potential for growth driven by increasing investments in EV infrastructure and a growing focus on sustainable transportation solutions.

List of Top EV (Electric Vehicle) Chips Companies

Infineon
NXP
Renesas
Texas Instrument
ST
Onsemi
Microchip
Micron
Samsung
SK Hynix
Winbond
Western Digital
Wingtech
Kioxia
GigaDevice
ISSI
Analog Devices
Nanya
SemiDrive
Horizon Robotics
Powersemi

Infineon Technologies AG: held the highest share in the EV chips market as of 2023, particularly dominating the power semiconductor segment. The company supplies over 25% of global automotive power semiconductors, with its IGBT modules and silicon carbide (SiC) MOSFETs widely used in electric drivetrains and inverters. Infineon’s chips are integrated into EV models from global OEMs such as Tesla, BYD, and Volkswagen.

NXP Semiconductors N.V.: ranks as one of the top suppliers of microcontrollers and sensor chips for EV applications. As of 2023, the company held a 12% share in the automotive microcontroller segment. Its chips are widely used in battery management systems, ADAS, and in-vehicle networking. NXP’s scalable S32 vehicle platform is integrated into several EV platforms from companies such as Hyundai and Ford.

Investment Analysis and Opportunities

The EV (Electric Vehicle) chips market is undergoing a surge in investment as countries and corporations alike race to secure technological superiority in next-generation mobility. In 2023 alone, over $35 billion was allocated globally towards automotive semiconductor R&D and manufacturing capacity expansion, a sharp increase from $24 billion in 2021. A significant portion of this capital is being funneled into SiC (silicon carbide) and GaN (gallium nitride) chip production—essential components for efficient EV powertrains. Infineon Technologies announced a major expansion in Kulim, Malaysia, with a €2 billion investment to build the world’s largest 200mm SiC power fab, aiming to start production in 2024. Similarly, Onsemi has allocated $1.2 billion to expand its silicon carbide capacity in the United States and Czech Republic. These investments are strategically targeted at improving power density and thermal performance in EV chips. Asia-Pacific continues to lead in EV chip investments. China’s Ministry of Industry and Information Technology launched a semiconductor fund exceeding $40 billion, with a dedicated focus on automotive-grade chips.

In Japan, Renesas Electronics secured a ¥300 billion loan to modernize and expand its domestic production of MCU and sensor chips for EVs. Automotive OEMs are increasingly collaborating directly with chipmakers to ensure supply chain resilience. In 2023, Tesla signed a long-term supply agreement with STMicroelectronics for next-gen SiC chips, while General Motors partnered with GlobalFoundries to co-develop chips tailored to future EV platforms. These moves signal a shift in vertical integration and demand-driven chip customization. Opportunities are not limited to chip production alone. New markets are emerging around software-defined vehicles, where chips support over-the-air updates, digital cockpits, and real-time telemetry. EV chipmakers are now investing in AI and ML integration capabilities, with companies like NVIDIA entering the automotive SoC (System-on-Chip) space with their Drive Orin platform, which supports over 254 TOPS (trillions of operations per second) in AI computing—vital for autonomous driving features. Battery management remains a lucrative opportunity. With lithium-ion battery production expected to reach 6,000 GWh annually by 2030, demand for high-efficiency chips that enable thermal monitoring, charge optimization, and fail-safe operation is accelerating. Chipmakers are responding by integrating high-precision ADCs (Analog-to-Digital Converters) and low-power MCUs into dedicated battery control systems.

New Product Development

Innovation in the EV chip market has intensified, with manufacturers focusing on enhancing energy efficiency, safety, and system integration. In 2023–2024, more than 70 new chip architectures were introduced globally, covering everything from power management ICs to AI-integrated SoCs for autonomous EV platforms. Infineon Technologies launched its CoolSiC™ MOSFET 1200V G2 series, designed for EV main inverters and charging systems. These chips deliver up to 20% higher switching performance and 15% lower conduction losses, crucial for extending EV range and reducing heat dissipation. The new generation is already integrated into EV models from Hyundai and Nio. NXP Semiconductors released its S32K3 microcontroller series, featuring a safety-certified lockstep core architecture and scalable automotive network protocols. These chips are targeted at ADAS, domain control, and EV battery management systems. The S32K3 series can manage 20–40% more sensor inputs compared to previous generations, enhancing functional safety compliance.

STMicroelectronics unveiled its new Stellar SR6 automotive processor in 2024. Built on 28nm FD-SOI technology, it enables zonal vehicle architectures and supports Gigabit Ethernet, CAN-FD, and automotive-grade cybersecurity features. This processor is optimized for next-gen EV control units and reduces system latency by up to 35%. Renesas introduced its RA8 Series MCUs built on 32-bit Arm® Cortex®-M85 processors, aimed at high-performance EV applications such as charging modules and high-frequency switching regulators. These chips come with integrated digital signal processing and AI inference accelerators, offering up to 6.39 CoreMark/MHz performance. Onsemi developed an advanced EliteSiC 650V power module specifically for traction inverters. This chip allows up to 98.5% inverter efficiency, reducing power losses and enhancing acceleration performance in EVs. It has already been selected by a Tier-1 European OEM for integration into 2025 electric platforms.

Five Recent Developments

Infineon Breaks Ground on $5.4 Billion SiC Fab in Malaysia (2023): officially began construction of its new silicon carbide power semiconductor fab in Kulim, Malaysia. The facility, with an investment exceeding €5 billion, is set to become the world's largest 200mm SiC fab. The plant will increase Infineon’s SiC production capacity by more than 200% by 2027, targeting the rapidly growing demand from electric vehicle manufacturers across Asia, Europe, and North America.
NXP Semiconductors Unveils Battery Management Chip Platform (2024): launched a new generation of battery management system (BMS) chips under its HV BMS product line. These chips offer <2mV cell measurement accuracy, enabling higher battery pack performance, extended range, and improved diagnostics for EVs. The chips also support functional safety standards up to ASIL D, and are now deployed in multiple Chinese EV platforms.
Renesas Acquires Panthronics for Enhanced Wireless EV Charging Chips (2023): Electronics acquired Austria-based Panthronics in April 2023 to strengthen its position in Near-Field Communication (NFC) and wireless power transfer technologies. This move is expected to support future development of EV wireless charging ICs. Panthronics’ patented Active Load Modulation technology offers improved signal stability for power and data transfer across electric drivetrains and charging interfaces.
STMicroelectronics Delivers Next-Gen SiC Modules for EV Inverters (2023): began mass production of its ACEPACK DRIVE SiC modules in Q4 2023. These modules integrate third-generation 1200V SiC MOSFETs, supporting EV inverters with high energy efficiency and smaller thermal footprints. A global OEM has committed to installing these modules in its entire 2025 EV lineup. The chips support current ratings of up to 650A, suitable for high-performance and luxury EVs.
Onsemi and Volkswagen Enter Strategic Partnership for SiC Supply (2024): announced a multi-year strategic agreement with Volkswagen Group to supply EliteSiC 1200V devices for the automaker’s MEB and SSP platforms. The partnership includes co-development on next-generation EV traction inverters. The deal is expected to secure supply of more than 1 billion SiC chips over the next five years, significantly bolstering Onsemi's automotive footprint.

Report Coverage of EV (Electric Vehicle) Chips Market

The EV chips market report provides a comprehensive overview of the semiconductor components essential for electric vehicle functionality, covering a broad spectrum of chip types and applications. It encompasses detailed segmentation by type, including computing chips, MCU function chips, power chips, driver chips, sensor chips, analog chips, functional safety chips, power supply chips, memory chips, and communication chips. Each segment is analyzed with specific data on unit shipments, integration trends, and technology advancements as of 2023 and early 2024. The report delves into applications such as power control, battery management, in-vehicle infotainment systems, advanced driver assistance systems (ADAS), and others, presenting facts on chip adoption rates and system complexity. For example, the battery management application segment accounts for approximately 30% of total EV chip usage, driven by the need for efficient energy storage and safety. ADAS-related chips have seen significant upticks, with sensor and communication chip volumes rising by over 22% in 2023. Regional performance analysis forms a core part of the report, with a focus on key markets including North America, Europe, Asia-Pacific, and the Middle East & Africa. North America’s EV chip market is distinguished by strong demand for high-performance computing and AI-enabled chips, with U.S. automotive semiconductor production increasing by 15% annually.

Europe emphasizes power electronics and regulatory compliance, and Asia-Pacific leads in chip manufacturing capacity, holding over 65% of the global EV chip production as of 2024. The competitive landscape section provides insights into major companies such as Infineon Technologies and NXP Semiconductors, who collectively hold over 35% market share in the automotive chip space. Their product portfolios, recent developments, strategic investments, and partnerships are analyzed in detail, reflecting their influence on supply chain dynamics. Investment trends and R&D activities are covered extensively, highlighting major capital expenditures on silicon carbide fabs, integration of AI and machine learning capabilities, and development of next-generation chip architectures. The report includes data on new product launches, technology roadmaps, and anticipated shifts in chip design towards multi-function SoCs and energy-efficient solutions. Additionally, the report evaluates the impact of global policies promoting electric mobility, semiconductor supply chain disruptions, and raw material availability on the EV chip market. It quantifies the effects of regulatory frameworks across regions, emphasizing emissions targets and safety standards influencing chip demand. Overall, this market report provides a fact-based, data-driven, and in-depth examination of the EV chips market’s current status and near-term outlook, supporting stakeholders in strategic decision-making and investment planning with up-to-date, verified numerical information.