Automotive equipment manufacturers are starting to design their own chips ICT Business

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Automotive equipment manufacturers are starting to design their own chips

Automotive equipment manufacturers are starting to design their own chips

Photo: DepositPhotos

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By 2025, chip shortages and trends such as electrification and autonomy will encourage 50 percent of the top ten automotive original equipment manufacturers (OEMs) to design their own chips, Gartner said in the study.

As a result, they will gain control over the product plan and supply chains.

Semiconductor supply chains for cars are complex. In most cases, chipmakers have traditionally placed third or fourth place on the carmaker’s list of priorities, which means it usually takes some time to adjust to changes affecting car market demand. in the supply chain, it has increased the desire of OEMs of automakers to have greater control over the supply of semiconductors. “

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Logically, if they produce parts that are of great importance, and in the current process they are lagging behind in time and every other sense, it is better to produce them yourself. Which will start happening very soon. That is, it is already happening with some.

Gartner also states that such a thing is not unknown to the automotive industry, nor is it unique. Because, some of the largest manufacturers, such as Samsung and TSMC have provided insight into production processes, and some other chip manufacturers have ceded intellectual property, so creating your own chips is much easier for those who want to get involved in something like that.

“The lesson carmakers learned during the chip shortage has been learned and will further motivate the industry to evolve into technology, that is, to make car companies technological,” Gartner said, adding that by 2025 the average price of new vehicles will exceed $ 50,000 in the United States. American States and Germany.

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Such high prices will affect the total number of vehicles sold, but will therefore increase sales of parts and existing upgrades for used vehicles because it will be cheaper for owners to stick to them than to buy new ones.





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