Decoding What Chips Are Used in Cars: Your Essential Guide to Automotive Semiconductors

Automotive innovation hinges on a range of specialized chips. When asking what chips are used in cars, you’re tapping into a realm where cutting-edge technology meets practical application. These semiconductor chips juggle tasks from regulating engine functions to enabling the latest in driver-assist technology. In this concise overview, you’ll learn about the integral role and variety of chips that define modern-day car operations, paving the way for the future of travel.

Key Takeaways

  • Automotive chips have evolved from early Engine Control Units managing fuel injection to sophisticated systems controlling everything from brakes to infotainment, with modern vehicles containing up to 3,000 semiconductor chips.
  • The global chip shortage between 2021 and 2023 led to significant production delays and reduced output in the auto industry, sparking initiatives to boost semiconductor manufacturing and lessen dependence on limited suppliers.
  • The automotive chip market is set for substantial growth driven by the expanding electric vehicle market and advancements in autonomous driving technologies, with the demand forecasted to reach $147 billion by 2030.

The Evolution of Computer Chips in Cars

Illustration of vintage car with modern computer chips

Automotive chips first emerged in 1968 when Volkswagen pioneered the integration of computers in cars with an electronic fuel injection system. Initially, these chips primarily controlled the engine’s fuel injection system and monitored the car’s performance. However, as automotive technology has progressed, the roles of these chips have diversified and expanded.

Now, these chips perform a range of functions, from controlling transmission and monitoring anti-lock brakes to powering infotainment and GPS navigation systems. Modern vehicles are a testament to the complexity and range of functionalities supported by computer chips today, with some incorporating up to 3,000 semiconductor chips.

Early Engine Control Units (ECUs)

Volkswagen’s Type-3 models were the first to feature an Engine Control Unit (ECU) in 1968, which managed electronic fuel injection. By the late 1970s, ECUs had become a standard feature in most vehicles, driven by the need to meet stringent government emission regulations.

Today, ECUs are vital components of modern vehicles, employing semiconductor chips to control critical engine functions and enhance performance. These early ECUs laid the foundation for the advanced, multifunctional automotive chips we see in vehicles today.

The Rise of Microcontroller Chips

The advent of microcontroller chips in vehicles came about due to instrumental collaborations between leading automakers and tech companies. A notable example was the collaboration between General Motors and Motorola in 1976, which resulted in the widespread use of the Computer Command Control system in GM vehicles by 1981.

Following suit, Ford teamed up with Intel in 1983 to produce Electronic Engine Control units that utilized custom Intel microcontroller chips, further advancing automotive chip integration. These collaborations marked the dawn of a new era in automotive technology, where microcontroller chips would play an increasingly crucial role.

Advancements in Chip Technology

In the late 1980s, there was significant progress in automotive chip technology as companies began to incorporate more advanced microcontrollers into vehicles. General Motors and Chrysler were early adopters, utilizing the 16-bit Motorola 68HC11 microcontroller chip for their vehicle Engine Control Modules.

By 1994, Ford had made the leap to 32-bit microcontroller technology, employing Motorola’s Powertrain Electronics Controller (PTEC) microcontrollers to manage their vehicles’ powertrains. These transitions underscore the automotive industry’s drive towards more powerful and efficient chip technology to enhance vehicle performance and functionality.

Types of Semiconductor Chips Used in Cars

Illustration of semiconductor chips used in cars

In cars, semiconductor chips play a multitude of roles, including:

  • Powering engine sensors
  • Motor controls
  • Infotainment systems
  • Overseeing transmission and suspension controls

Modern vehicles, depending on various factors, are equipped with a large number of semiconductor chips, ranging from 1000 to 3500, encompassing technologies like enhanced lidars and smart cameras.

Specific types of chips, like high-grade legacy node semiconductor systems, enable functionalities such as:

  • Powering in-vehicle GPS systems
  • Controlling engine performance
  • Managing airbag deployment
  • Monitoring tire pressure
  • Assisting with collision avoidance systems

The variety and complexity of these chips reflect the vast array of functions they perform, making them indispensable components of modern vehicles.

Power Semiconductors

For electric and hybrid vehicles, power semiconductors are indispensable, managing battery systems, improving energy efficiency, and facilitating the smooth flow of high voltages and currents. Semiconductor materials like Silicon Carbide (SiC) and Gallium Nitride (GaN) have been adopted for high-power applications in these vehicles, with SiC being preferred for its efficiency and ability to operate at high temperatures.

In electric vehicle systems, power semiconductors are used to convert direct current from the battery into alternating current for the motor, playing a pivotal role in power management and maintaining voltage stability. Overall, power semiconductors contribute significantly to improving the efficiency and performance of electric vehicles by extending their driving range and reducing vehicle weight.

Automotive Functional Chips

In modern vehicles, automotive functional chips perform critical tasks like analyzing engine temperature, handling pressure sensor data, fine-tuning fuel injection, and optimizing ignition timing to boost engine performance. They also support critical car safety systems by helping in the deployment of airbags, operation of anti-lock braking systems, and management of stability control.

In addition to safety and performance, automotive functional chips also enhance the performance of infotainment systems, refining the overall user experience in terms of entertainment and information delivery. The increase in transistor density within automotive microprocessors allows more powerful computation and the consolidation of functions that previously required multiple chips into a single chip.

Autonomous Driving Chips

Sophisticated semiconductor technologies are at the heart of autonomous driving systems and advanced driver assistance systems, powering features such as self-parking, lane-keeping, and adaptive cruise control. Advanced driver assistance systems utilize semiconductor chips for vehicle handling and steering improvements, incorporating power supply, microcontrollers, and sensors in Electric Power Steering (EPS) systems.

Functional safety mechanisms critical for ADAS are implemented using automotive functional chips, designed with technologies like FMEA, FMEDA, and fault campaign management. Isolation technology is key in autonomous vehicles, as it ensures chip safety and signal stability by mitigating electrical disturbances and interference.

The advent of autonomous driving technology is propelling innovation in autonomous driving chip manufacturing and prompting increased competition among suppliers and tech companies, all driven by chip technology progress.

The Chip Production Process: From Silicon Wafers to Integrated Circuits

Illustration of silicon wafer production

The chip production process, a testament to modern technology, entails creating silicon wafers, enhancing transistor density, and designing integrated circuits using intricate software tools and photolithographic techniques. Silicon wafers, the foundational substrates upon which integrated circuits are built, are produced by growing silicon crystals and slicing them into thin discs.

As technology progresses, the transistor density of chips continues to increase, which is crucial for boosting the performance and efficiency of the chips used in automotive technologies. Semiconductor manufacturers aim to reduce the size of transistors, with state-of-the-art chips now featuring transistors just a few nanometers in size, allowing for greater density and lower power consumption.

The final designs of integrated circuits are then translated into masks, which are used to pattern the silicon wafers in a photolithographic process, creating the physical chips.

Wafer Production and Processing

Silicon wafers are fabricated from high-purity silicon and are the foundational element in semiconductor chip production. The process to create silicon wafers begins with melting high purity silicon to form a cylindrical shape known as an ingot.

Once an ingot is formed, it is precision sliced into thin discs to create the wafers. The surface of these thin silicon wafers is then meticulously polished to achieve the necessary flatness for the manufacturing of integrated circuits.

Transistor Density and Nanometer Process

Integrated circuits can contain up to billions of transistors, with technological advancements enabling more transistors to be placed on a single chip, hence enhancing chip performance. Consistent with Moore’s Law, the density of transistors on microprocessors has doubled approximately every 18 months, necessitating new manufacturing technologies and precise techniques.

However, higher transistor density brings its own challenges, such as increased heat production, which requires effective cooling solutions to maintain the chip’s functionality. Nanometer process technologies refer to improved transistor density generations, such as the ‘5 nm’ process, that represent a shift towards lower power consumption rather than any specific physical feature size.

Integrated Circuit Design and Functionality

Integrated circuit design for automotive use begins with electronic and electrical architecture, specifying the IC’s functionality and culminating with signoff before moving to manufacturing. Building the intricate layers of semiconductor chips requires a process known as photolithography, which is repeated multiple times to create the circuit elements on a silicon substrate.

Curious about how many semiconductor chips are used in automotive design? Some semiconductor chips comprise up to 30 distinct layers in their construction, demonstrating the complex nature of automotive chip design. Advancements in integrated circuit technology, like employing shorter wavelength light for etching and reducing operating voltage, are essential for improving transistor density and chip efficiency.

Tools used in the creation of automotive integrated circuits adhere to stringent quality and safety standards, including the ISO 26262 TCL 1, ensuring the reliability and functional safety of the chips.

The Impact of the Global Chip Shortage on the Auto Industry

Illustration of global chip shortage impact on auto industry

The global chip shortage has left a significant impact on the auto industry, causing:

  • Production delays
  • Reduced output
  • Limited availability of certain models
  • Potential price increases

The shortage led to a decrease of over 11 million vehicles in production during 2021, which in turn caused global car sales to drop by more than 12 percent compared to 2019.

Yet, despite facing formidable challenges, the auto industry has demonstrated adaptability and resilience, taking steps to lessen the impact of the shortage, aspects we will dissect in subsequent subsections.

Production Delays and Reduced Output

Between 2021 and 2023, automakers were forced to slash production by an estimated 19.6 million vehicles, with lead times for production extending to 10-12 months from the standard 3-4 months due to the chip shortage. This drastic reduction in output has had a substantial impact on the auto industry and its stakeholders.

To cope with the chip shortage, automakers had to not only reduce the overall number of vehicles produced but also eliminate certain popular features from their cars. These production delays and reduced outputs have created ripple effects through the industry and the global economy.

Limited Availability and Price Increases

Limited availability of chips has led to price increases, with average auto sales prices climbing to over $47,300 but began to decrease by 2.7% as the shortage eased and vehicle supply increased. In response, automakers and dealers have been offering more substantial discounts to consumers, doubling the average discount year over year in November, and creating a larger gap between sticker prices and actual transaction prices with more attractive financing and lease deals.

New vehicle loans have hovered around 7% for most of the year and could see a reduction even in the absence of rate cuts from the Federal Reserve. Despite facing challenges such as price increases, U.S. new vehicle sales exhibited a 12% rise in the previous year, showing strong consumer demand.

Industry Adaptation and Future Prevention

The auto industry has taken proactive steps to adapt to the chip shortage and prevent future shortages. Automakers have prioritized the production of their more profitable vehicles during the chip shortage by decreasing the output of less profitable models. The automotive industry has increased the inventory of finished cars which has contributed to shorter wait times for customers.

In response to the chip shortage, the auto industry has taken several measures to mitigate the impact:

  • Ordering chips in surplus and maintaining a backup inventory to buffer against demand spikes
  • Introducing initiatives to bolster semiconductor manufacturing capabilities in the United States, aiming to reduce dependence on Asian suppliers
  • Broadening the network of chip suppliers
  • Constructing new plants in various locations to circumvent future chip shortages

These actions are aimed at ensuring a stable supply of chips for the auto industry from reliable chip companies.

The Future of Chips in Cars: Electric Vehicles and Autonomous Driving

Illustration of electric vehicle with advanced semiconductor chips

Looking ahead, the future of automotive chips appears broad and promising. By 2030, the sectors of autonomous driving, connectivity, and electrification are expected to command the majority of the demand in the automotive chip market, which is anticipated to reach an estimated $147 billion. The revenue generated from autonomous driving technologies has the potential to be substantial, with predictions suggesting a value of several hundred billion dollars by the end of this decade.

The market for autonomous driving components specific to passenger cars is projected to grow to between $55 billion and $80 billion by 2030. Let’s delve deeper into the future of chips in electric vehicles and autonomous driving.

Growth of Electric Vehicles

A significant shift is happening in the electric vehicle market, with sales soaring by 47% to reach an unprecedented high. Both specialized electric vehicle manufacturers and traditional automakers are introducing a wider range of EV models into the market, reflecting the significant market expansion.

An average electric vehicle needs about 3,000 semiconductor chips, which is double the amount compared to diesel-powered automobiles. These chips are versatile for use across different electric vehicle models, adjusting to the needs of compact cars, high-performance vehicles, and even larger vehicles like trucks and buses. While the auto industry is working to catch up, electric vehicles still experience production delays, especially in battery manufacturing.

Advancements in Autonomous Driving Technologies

Consumer interest in autonomous driving features is at an all-time high, with many indicating they are willing to pay extra for vehicles equipped with advanced functionalities. As autonomous driving technology progresses, we expect to see more sophisticated features integrated across a broader spectrum of vehicles.

However, the successful uptake of autonomous vehicles hinges on regulatory backing and the establishment of global standards for technology implementation. As the technology continues to evolve, we anticipate a surge in the demand for autonomous driving chips in the coming years.

Innovations in Chip Design and Manufacturing

Moving forward, advancements in chip design and manufacturing will be pivotal in fulfilling the growing demand for automotive chips. Some key advancements to look out for include:

  • Next-generation power semiconductors made from materials like silicon carbide and gallium nitride, which are expected to enhance power utilization efficiency.
  • Improvements in power semiconductors, which are anticipated to lead to smaller inverters and fewer heat dissipation components.
  • A resultant decrease in manufacturing costs for electric vehicles.

These advancements will play a crucial role in meeting the increasing demand for automotive chips and driving the growth of the electric vehicle industry.

Despite companies increasing the production of 90 nm chips, the projected growth rate is estimated to be about 5% from 2021 to 2026, potentially not meeting the rising demand.

Summary

From the humble beginnings in Volkswagen’s fuel injection system to steering advanced autonomous driving features, automotive chips have come a long way. As we look to a future of electric vehicles and self-driving cars, these semiconductor chips will play an even more integral role. With the global chip shortage serving as a wake-up call, the auto industry is taking proactive steps to prevent future shortages and continue the steady march of progress. The road ahead is filled with challenges, but the drive towards a more connected, efficient, and sustainable future is stronger than ever.

Frequently Asked Questions

How many chips are in a car?

A modern car typically contains anywhere from 1,000 to 3,000 semiconductor chips. This is a significant amount and reflects the increasing role of technology in automotive design and functionality.

What are the little chips in a car called?

The little chips in a car are called semiconductor chips or microchips. They serve as the brain in modern electronics and are made of silicon with tiny transistors to control the flow of electrons.

What was the first application of computer chips in cars?

Volkswagen’s electronic fuel injection system introduced in 1968 was the first application of computer chips in cars.

How has the global chip shortage affected the auto industry?

The global chip shortage has significantly impacted the auto industry, leading to a production decrease of over 11 million vehicles in 2021 and a more than 12 percent drop in global car sales compared to 2019.

What is the anticipated demand for automotive chips by 2030?

The anticipated demand for automotive chips by 2030 is expected to be mainly driven by the sectors of autonomous driving, connectivity, and electrification, reaching an estimated $147 billion.

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