The acquisition of Cypress puts Infineon at the forefront of global automotive IC manufacturers with a market share of 11.9 percent.
According to IHS Markit, this market share corresponds to a turnover of 4.9 billion dollars. This is simply the result of adding Infineon's and Cypress's market shares and sales. In 2018, Infineon achieved sales of $4.2 billion (9.9 percent market share) with chips for use in cars, Cypress achieved $808 million and a share of 1.8 percent. Together, the new Infineon would be number one. Prior to the acquisition, NXP had achieved this position with sales of $4.5 billion and a market share of 10.8 percent.
The acquisition also gives Infineon access to markets it has not served before. Also in the automotive sector, where, for example, storage facilities are being added. Cypress is particularly successful with the NOR flash types, which are growing strongly because of their "instant-on" capability so popular in IoT applications, and with which Cypress is likely to achieve a market share of over 50 percent in the automotive sector. Last year, Cypress transferred its own SLC-NAND flash memory activities to a joint venture in which SK Hynix holds a 60 percent stake. "The NOR flash products fit well with Infineon's strategy to make the systems safe," says Phil Amsrud, Senior Principal Analyst Automotive Semiconductors at IHS Markit.
Also worthy of mention are the non-volatile shadow SRAMs Cypress has in its range, as well as ferroelectric RAMS (FeRAMs). It had originally developed Ramtron, which Cypress acquired in 2012. In 2018, Cypress ranked fourth among the world's largest memory suppliers to the automotive market.
IHS Markit expects Cypress memory ICs to help Infineon expand its position in ADAS and infotainment. In this sector, Infineon ranked eighth in 2018, Cypress ranked sixth, and added together, they would both have sales of $1.2 billion, putting them in fourth place, ahead of Renesas.
Infineon will also strengthen its 3rd position in the automotive market through Cypress MCUs. Cypress's controllers are aimed at a completely different market sector in cars than Infineon's Aurix controllers, so the products complement each other well.
Infineon Technologies AG, INFINEON Technologies AG Neubiberg, Cypress Semiconductor Corp.