Our people have been doing an analysis on the Hybrid market and what it could do for us. The quick answer is that it could become the next big thing. As it turns out, a Hybrid has almost 3 times the value of chips that a conventional IC car does (Internal Combustion). So if all cars sold in 2006 were hybrids, it would have added over $30 billion in semiconductor revenues to bring total automotive demand for semiconductors to about $50B. Now the microprocessor and DRAM markets are just over $30B. The Flash market, which has been everyone’s meal ticket since 2001 is only $20B.
Now what benefit would that bring to consumer? It turns out that the average car sold gets 21 MPG. If we take a typical life of 100K miles, then the cars sold should consume 326B gallons of gas over this life. If all the cars sold were hybrids and using a 35 MPG average then only 195B gallons would be needed. That’s a savings of 130B gallons or a reduction of 40%. At $3 per gallons, it’s a savings of $391B.
That is just over 1 year’s revenue for Exxon. So hybrids are clearly a threat. But at the same time the payback on the semiconductors will be greater that ten times. Plus, how can you put a dollar figure on reduced dependency on oil and saving some for our children and grandchildren.
The hottest energy Papers uploaded over the past 2 weeks are:
1)Harnessing Solar Energy for the Production of Clean Fuels
2)Ocean Wave Energy Conversion Technology
3)Agriculture, bio-fuels and striving for greater energy independence
About weQuest: weQuest's are written by G Dan Hutcheson, his career spans more than thirty years, in which he became a well-known as a visionary for helping companies make businesses out of technology. This includes hundreds of successful programs involving product development, positioning, and launch in Semiconductor, Technology, Medicine, Energy, Business, High Tech, Enviorntment, Electronics, healthcare and Business devisions.