14 Jul 2023 -

Automakers venture into chip design to secure future supply

car electronics

As we reach the tail end of the automotive chip shortage, automakers are working with original component manufacturers (OCMs) to create new solutions for automotive applications.

The chip shortage was a major challenge for the automotive industry, but it also led to some innovative solutions. For example, some automakers began to develop their own chips, while others partnered with chipmakers to create customized solutions. The chip shortage also accelerated the development of new technologies, such as over-the-air updates and software-defined vehicles.

And now non-traditional automotive chipmakers are venturing into the world of auto chips to expand their product ranges to now include smarter driving solutions.

Automakers are partnering with chipmakers to get customised solutions for their vehicle lineups. For example, Volkswagen is working with Qualcomm, Horizon Robotics, and Mobileye for their ADAS/self-driving systems developments. At the same time, BYD and Li Auto have teamed up with Nvidia and Horizon Robotics for more intelligent systems.

There is a surge of automotive chip innovation on the horizon, especially within the automotive system-on-chip (SoC) market. Traditional automotive chip suppliers, including NXP Semiconductor, Infineon, and Renesas, are shifting from SoC to MCUs to capture their share of the advanced driver assistance systems (ADAS) market. With their absence, new players, including Nvidia, aim for the positions these traditional auto chipmakers held.

Along with Nvidia’s incredible AI-capable GPUs, Nvidia is also working on its own software development kits (SDKs) to better cater to the growing requirements of automakers. Many non-conventional automotive chip companies are expanding their product lines by entering through SDK products.

The automotive chip market is undergoing a major transformation. As EVs and autonomous driving become more widespread, automakers will need to adopt new technologies and solutions. The chipmakers that are able to adapt to this changing landscape will be well-positioned for success.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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