Automotive MCU Market Set for 23% Growth in 2021, Reaching $7.6 B Amid Supply Constraints

Automotive microcontroller (MCU) sales are projected to climb 23% in 2021, reaching a record $7.6 billion, as 32‑bit MCUs command higher average selling prices amid tight supply conditions.

IC Insights’ Mid‑Year Update to The McClean Report 2021 shows that more than 75% of automotive MCU revenue derives from 32‑bit designs, totaling approximately $5.8 billion this year. 16‑bit MCUs are expected to generate $1.3 billion, while 8‑bit units will bring in $441 million.

Infotainment MCUs—those powering entertainment and information systems such as digital maps, GPS, and internet connectivity—are projected to represent 10% of the market ($780 million). The remaining 90% (about $6.8 billion) will cover engine control, power‑train, brakes, steering, power windows, and battery management.

Over the past decade, automotive MCUs have accounted for roughly 40% of total MCU sales, yet the segment has experienced uneven growth. After a 12% rise in 2017, worldwide sales stalled to a 1% increase in 2018, and a global recession in 2019, followed by the COVID‑19 pandemic, further muted demand.

Once the pandemic‑induced downturn eased in mid‑2020, end‑use markets recovered and demand rebounded by year‑end. However, ramping up semiconductor production on aging 200 mm wafer lines—often with older process nodes—lagged behind the resurgence.

Despite early‑2021 setbacks, including Texas power outages during a historic arctic cold snap and fire damage to several Japanese wafer plants, IC manufacturers are accelerating MCU output. TSMC, for instance, announced in July 2021 that its 3Q 2021 wafer‑fab capacity for automotive MCUs would increase by 60% over the previous year and 30% above pre‑pandemic levels.

The McClean Report’s mid‑year update notes revenue growth in 32 of 33 integrated‑circuit product categories for 2021, driven by robust end‑use demand. Only the marginal gate‑array market—forecast at $58 million—will see a decline. Special‑purpose logic, DRAM, mobile‑phone MPUs, and display drivers are all slated for sales gains exceeding 30%, with the overall IC market projected to rise 24%.

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