The global automotive Tier 1 market presented a "two-tiered" scenario in Q3 2025, with leading enterprises widening the gap through their layout of core components. Denso of Japan led the pack with quarterly automotive business revenue of approximately $11.45 billion in the first half of the fiscal year, while three companies including Hyundai Mobis ($10.2 billion) and Magna ($10.462 billion) entered the billion-dollar revenue club. However, the UAW strike in August 2025 continued to weigh on the net profits of North American counterparts. Behind the performance divergence, the application depth of components such as silicon carbide (SiC) and high-resolution automotive sensors has emerged as the core variable.

 

The trend toward new energy vehicles has driven an explosion in demand for SiC devices, which have become the profit growth engine for Tier 1s. Hyundai Mobis posted a 1% year-on-year increase in net profit in Q3, with steady growth in its electrification components business—benefiting primarily from the mass application of Rohm’s 4th-generation SiC MOSFETs, which are integrated into the inverters of multiple Zeekr models. Though smaller in scale than industry giants, onsemi has secured a significant share in China’s BEV market with its 1200V EliteSiC M3e MOSFET (a 3rd-generation SiC technology with Qrr reduced to 35nC), driving outstanding performance in its related business. North American Tier 1s, meanwhile, have locked in 60,000 unit orders for 2025 by partnering with Lipus’ 800V SiC modules, laying the groundwork for revenue growth.

 

The upgrade of intelligent driving has spurred a wave of sensor innovation, with leading manufacturers reaping the benefits first. OmniVision’s 12MP automotive sensor OX12A10 has entered the ADAS supply chain of companies like Magna, thanks to its ultra-compact package and wide dynamic range advantages; mass production of this product kicked off in Q3 2025. Sony’s ISX038 sensor has gained favor with Aptiv for its 130dB high dynamic range, and its ability to output both RAW and YUV images simultaneously enhances the efficiency of environmental perception in intelligent driving systems.

 

Notably, cost-reduction solutions such as Infineon’s HybridPACK™ Drive G2 Fusion hybrid module are emerging as a new choice. By combining 30% SiC with 70% silicon, these modules balance performance and cost, helping enterprises like Vitesco Technologies (formerly the automotive business of Continental AG) optimize their profit structure. Q3 results confirm that Tier 1s betting on core components like SiC and high-resolution sensors are seizing the initiative in the new round of competition, while German manufacturers such as Bosch and Schaeffler have fallen into losses due to slow transformation.