Chipmakers look to car sector for demand, deals and disruption

Berlin

FALTERING demand in computer and phone markets, once semiconductor industry mainstays, has fuelled a year-long merger wave as firms look to formerly unloved areas like car electronics for sales growth.

Big consumer chipmakers who once considered automotive electronics too small to merit attention are taking notice as Tesla, Google and Apple have jump-started a drive to turn cars into connected Internet devices.

That promises accelerating growth rates for incumbent electronics suppliers that are the envy of those looking to break into the business.

On Monday, NXP is set to close its US$11.8 billion deal to buy Freescale, displacing Renesas as the world'…