Narrative: Semiconductor and Sensor Consumption Demand Forecast 2025 Q2

US tariff uncertainty slows global auto semiconductor demand. Analysis covers BEV growth, electrification, ADAS, and shift to domain controllers & zonal architectures.

Continued uncertainty around US tariff policies and the impact these will have on the global economy are the dominant factors impacting semiconductor demand from vehicle output in this update. This analysis explores the ongoing challenges around slower growth in demand for battery electric vehicles in markets outside China. It explores the overall trends of electrification, ADAS/autonomy, infotainment, vehicle connectivity, and a move toward using domain controllers and zonal architectures and centralized processing. These trends have a positive impact on demand for overall semiconductor content.