As the automotive industry shifts towards electric and autonomous vehicles, one question looms: how have semiconductors become the cornerstone of automotive innovation? In this article, we address the critical role of semiconductor in cars, encompassing engine control, safety features, and the enabling technology behind tomorrow’s vehicles—without overlooking the challenges thrown by the recent chip shortage.
Key Takeaways
- Semiconductor chips are crucial in modern vehicles, with each car containing between 1,400 to 3,000 chips facilitating advanced features, safety, efficiency, and the shift towards electric and autonomous vehicles.
- The global chip shortage has led to significant challenges in the automotive industry, including production reductions, financial losses for automakers, and increased vehicle prices, prompting various strategic responses and long-term solutions.
- Leading players in the automotive semiconductor market such as Texas Instruments, NXP Semiconductors, and Intel are driving innovation and shaping the industry with a wide range of products and strategic partnerships.
The Growing Presence of Semiconductor Chips in Modern Vehicles
As advanced features and eco-friendly, intelligent vehicles become prevalent, semiconductor chips emerge as a fundamental element of automotive innovation. Some might wonder how many semiconductor chips are in modern vehicles, and the answer is quite astonishing: anywhere from 1,400 to a staggering 3,000 chips, orchestrating everything from meticulous engine control to the seamless connectivity we’ve come to expect. These chips are not just about adding luxury; they are pivotal in ensuring improved vehicle safety and enhancing the overall driving experience.
The deeply interconnected nature of the automotive and semiconductor industries is evidenced by the predicted increase in the value of semiconductor chips per vehicle, estimated to reach approximately $1,400 by 2028. This underscores their escalating importance in our technology-driven automotive environment. As we embrace electric vehicles (EVs) and the prospects of autonomous driving, the semiconductor chip has shifted from a simple component to the beating heart of automotive evolution.
Evolution of Semiconductors in Cars
The evolution of semiconductors in cars represents a saga of transformation and ceaseless innovation. Initially, their role was confined to basic tasks; today, they are the maestros of engine management, the architects of infotainment, and the guardians of vehicle safety. These semiconductor chips play a critical role in enabling regenerative braking systems and emergency braking systems, contributing significantly to the reduction of carbon emissions and the enhanced safety of modern vehicles.
The story of automotive semiconductors is not just about the chips themselves, but also about the automotive industry’s journey towards a cleaner and safer future. The symbiosis between the two is a powerful force driving technological advancements and reshaping our driving experiences.
Key Functions of Semiconductor Chips
Acting as the unseen powerhouse in vehicles, semiconductor chips energize vital operations such as:
- engine management
- motor controls
- fuel injection
- driver assistance
They ensure every aspect of the vehicle’s systems, including transmission and suspension control, operates with precision and efficiency, ultimately contributing to a safer and more responsive drive.
Infotainment systems have evolved into sophisticated hubs of interaction, thanks to semiconductor technology. Touchscreen interfaces, GPS navigation, and smartphone integration are all made possible by these advanced semiconductor chips, transforming how we stay connected and entertained on the move.
The Shift to Electric and Autonomous Vehicles
Semiconductor chips are leading the dramatic transition in the semiconductor and automotive industries towards hybrid and electric vehicles, as well as autonomous vehicles. Their advanced power electronics and sensor technologies are the backbone of EVs, ensuring efficient battery management and refined vehicle controls. The burgeoning electric vehicle sector, buoyed by regulatory support and substantial investments, is propelling the demand for these advanced semiconductor chips.
Intel’s focus on autonomous vehicles exemplifies the industry’s trajectory, predicting that these smart cars will form a significant portion of vehicle registrations in the near future. As we advance, the semiconductor’s role becomes ever more integral, bridging the gap between mere transportation and intelligent mobility.
Essential Semiconductor Devices in Automotive Systems
A glimpse into the core of modern vehicles unveils a system of indispensable semiconductor devices, each performing a crucial function in the operation of the car. Electronic control units (ECUs) are the brains behind the vehicle’s electrical systems, influencing performance and managing a suite of functions from the engine to the brakes. Meanwhile, MEMS-based semiconductors offer advanced actuation and sensing functions, enhancing vehicle safety, comfort, and performance.
These semiconductor devices are not just components; they are the keystones of automotive innovation, facilitating advancements in electric power steering (EPS) and the rich features of infotainment systems. As we delve into these applications, we witness the tangible benefits of semiconductor technology in enhancing driver experience and vehicle capabilities.
Engine Control Units (ECUs)
Engine Control Units (ECUs) are the masterminds of vehicle performance, governing various electrical systems with precision and control. These critical semiconductor devices are composed of a microcontroller, memory components, and interfaces that work together to ensure optimal engine performance and fuel economy. By managing fuel injection and ignition timing, ECUs play a central role in the engine’s efficiency and responsiveness.
The complexity of modern vehicles often necessitates numerous ECUs, with some boasting as many as 150 individual units, each dedicated to a specific function. This intricate web of control units is a testament to the importance of semiconductor technology in achieving advanced vehicle functionality.
Electric Power Steering (EPS)
Electric Power Steering (EPS) systems have revolutionized the way we interact with our vehicles. Utilizing semiconductor components like microcontrollers and sensors, EPS systems enhance steering feedback and vehicle safety, offering drivers a more connected and controlled driving experience. The advancement of EPS is a clear example of how semiconductor technology is actively reshaping vehicle dynamics and driver engagement.
In the realm of EPS, semiconductors are the silent partners that empower drivers with more precise control, ultimately contributing to safer and more enjoyable journeys. The journey of EPS from traditional hydraulic systems to today’s sophisticated electric variants exemplifies the transformative impact of semiconductor technology in the automotive sector.
Infotainment and Connectivity
The role of semiconductors in infotainment and connectivity systems cannot be overstated. As the central hubs for in-car entertainment and navigation, these systems rely on semiconductor chips for their advanced features, such as high-resolution touchscreen interfaces and in-vehicle GPS. The leap in GPS technology, powered by high-grade legacy node semiconductor systems, has been instrumental in enhancing vehicle connectivity.
Thanks to semiconductor-driven advancements in modern cars, navigating the roads has never been more intuitive, and staying connected on the move has never been easier. These enhancements in vehicle technology represent a quantum leap from the basic radio units of the past to the intelligent infotainment systems we enjoy today.
Innovations in Automotive Semiconductor Technology
The automotive semiconductor environment is characterized by continual evolution and creativity. Novel materials such as Silicon Carbide (SiC) and Gallium Nitride (GaN) are setting new benchmarks in efficiency and performance, particularly in the realm of electric vehicles. These wide-bandgap devices are replacing traditional silicon semiconductors in power conversion systems, offering higher power levels and increased efficiency.
The significance of these material advancements is reflected in the anticipated growth of the SiC semiconductor devices market, which is expected to see substantial growth by 2030, driven by the electric vehicle sector. As we explore the specific innovations in SiC and GaN, improved energy efficiency, and ADAS enablement, we will discover how these advancements are not just shaping the present but also defining the future of automotive technology.
Material Advancements: SiC and GaN
The adoption of Silicon Carbide (SiC) and Gallium Nitride (GaN) in the automotive industry marks a significant material advancement. These wide-bandgap semiconductors manage higher power levels and enable greater efficiency, particularly crucial for the powertrains of electric vehicles. SiC MOSFETs, for instance, are pivotal in enhancing the efficiency of electric vehicle powertrains, leading to an extended driving range and reduced system costs.
The implementation of SiC-based inverters in 800-volt battery electric vehicle powertrains is a prime example of how these materials cater to the higher efficiency requirements of modern EVs. The material advancements in SiC and GaN are not just incremental improvements but revolutionary changes that promise to redefine automotive power systems.
Improved Energy Efficiency and Performance
Advancements in semiconductor technology are driving significant improvements in energy efficiency and vehicle performance. The use of eight-inch silicon carbide wafers is poised to bring about efficiencies and cost savings, granting manufacturers a competitive edge. The introduction of SiC in electric vehicles is a game-changer, reducing losses and achieving efficiency rates that exceed 90%.
High switching frequencies in power semiconductor devices offer several benefits in electric vehicles (EVs):
- More precise control of electric motors, resulting in smoother acceleration and deceleration
- Improved energy efficiency
- Application in Electric Power Steering (EPS) systems for more responsive steering
- Reduced maintenance
- Better fuel economy
These advantages make power semiconductor devices a crucial component in EV technology.
Enabling Advanced Driver Assistance Systems (ADAS)
Semiconductor technology is the foundation upon which Advanced Driver Assistance Systems (ADAS) are built. Systems like adaptive cruise control and lane departure warnings rely heavily on the integration of sophisticated semiconductor chips to function effectively. Innovations by companies such as Texas Instruments and NXP Semiconductors, including products like the AWR2544 radar sensor, are pioneering ADAS development.
Intel’s contribution to automotive technology, with a scalable portfolio and software-defined computing, is facilitating the advancement of ADAS in digital and electric vehicles. As we look to the future, technologies such as Automotive UWB IC and in-vehicle AI systems will continue to strengthen the capabilities of safety and assistance features, making our roads safer and driving experiences more intuitive.
Navigating the Global Chip Shortage: Challenges and Solutions
Sending shockwaves through the automotive industry, the global chip shortage led to a production exclusion of over 11 million vehicles in 2021 alone. The scarcity of semiconductor chips has led to production delays, limited availability of certain models, and a not insignificant uptick in vehicle prices. The financial impact on automakers has been stark, with billions of dollars in lost earnings, and the ripple effects felt across related sectors like car rentals.
In response to these challenges, the industry has taken decisive actions—increasing chip production capacity, enhancing supply chain resilience, and prioritizing the allocation of chips to essential automotive functions. Automakers are also adapting by purchasing preowned vehicles and temporarily suspending operations at some plants to mitigate the impact. As we continue to navigate this shortage, the industry’s resilience and adaptability are being put to the test.
Effects on Car Production and Prices
The chip shortage has brought about a notable reduction in car production, causing the automotive industry to endure up to 40 percent decreases in output. Financial losses have been substantial for automakers, who have had to scale down production volumes and even remove popular features from vehicles. The shortage has also prompted automotive OEMs to take a more hands-on approach with semiconductor supply chain security and technical integration, particularly in the design of SiC-based components.
The complexities of modern vehicle electronics architecture, encompassing aspects such as connected vehicles, autonomous driving, and powertrain electrification, only add to the challenges faced during this shortage. The effects of the shortage extend beyond production and pricing, influencing the very way cars are designed and manufactured.
Industry Response and Adaptation
The industry has responded to the chip shortage with a range of strategies, including:
- Setting up dedicated ‘war rooms’ employing analytics to strategically match supply with demand
- Finding innovative workarounds, such as rewriting software to use available semiconductors
- Ordering semiconductor chips in surplus to create backup inventories, aiming to prevent future supply disruptions
Collaboration has also become a key strategy in overcoming these challenges. OEMs, tier-one suppliers, and semiconductor suppliers are working together to align goals and synchronize efforts, illustrating the industry’s commitment to finding long-term solutions to the semiconductor shortage.
Long-term Solutions and Partnerships
Addressing the semiconductor shortage in the long-term involves reassessing just-in-time delivery practices and maintaining elevated stock levels to avert production disruptions. The industry is reassessing supply chain resilience, with strategies such as dual-source manufacturing and supply guarantees being considered. Semiconductor devices, particularly power semiconductors for EVs, are now being designed with real-time monitoring and adaptive capabilities, enhancing driving conditions and contributing to predictive maintenance.
Partnerships have also emerged as a vital component in addressing the shortage. Some examples of industry collaborations include:
- NXP Semiconductors’ collaboration with Foxconn to focus on intelligent connected vehicles
- Intel’s partnership with Mobileye to develop autonomous driving technology
- General Motors’ collaboration with Honda to develop next-generation electric vehicles
These partnerships demonstrate how industry players are coming together to forge a new generation of automotive technologies.
Leading Players in the Automotive Semiconductor Market
Innovation drives the automotive semiconductor market, with its shape molded by a group of leading entities such as:
- Texas Instruments
- NXP Semiconductors
- Intel
- Infineon Technologies
These companies offer a diverse range of products covering various market segments, from microcontrollers to chips for sensors and cameras, demonstrating the vast scope of automotive semiconductor applications.
The market is characterized by its fragmentation, with other key players such as Renesas Electronics Corporation, STMicroelectronics NV, and Toshiba Electronic Devices & Storage Corporation also contributing to the industry’s breadth of offerings. The continuous innovation by these companies underscores the dynamic and competitive nature of the automotive semiconductor market.
Texas Instruments
Texas Instruments is a leading player in the automotive semiconductor market, providing a range of chips essential to multiple vehicle functions. The company’s commitment to supporting their products extends beyond the chip itself, providing comprehensive services such as design reviews and technical support throughout the transition from concept to production.
With a vast range of semiconductors tailored for the automotive sector, Texas Instruments is not just supplying parts; it’s enabling the evolution of vehicles into sophisticated machines that are safer, smarter, and more connected than ever before. Their focus on the tech-first automobile space has positioned them as an indispensable partner for automakers around the globe.
NXP Semiconductors
NXP Semiconductors has established its unique position in the automotive market with its pivotal semiconductor solutions. These solutions are seamlessly integrated into automotive systems, affirming the company’s significant role in the industry. NXP’s offerings are not limited to functionality; they contribute to the overarching vision of a more connected and intelligent automotive future.
As vehicles become more complex and integrated, the role of companies like NXP Semiconductors becomes increasingly important. Their expertise in semiconductor technology is a driving force behind the sophisticated systems that define the modern car—systems that ensure safety, enhance performance, and provide the connectivity that consumers demand.
Intel and Other Key Players
Intel, renowned for its strong presence in the computing sector, is progressively broadening its influence in the automotive semiconductor market. The company’s focus on delivering advanced solutions for modern vehicles is shaping an era of enhanced performance and connectivity. By establishing strategic partnerships with automotive manufacturers, Intel’s chips and technologies are becoming an integral part of new car models, particularly in the realm of ADAS.
The competition in the automotive chip market is fierce, with Intel contending with other key players like Texas Instruments and NXP Semiconductors. These companies are at the forefront of technological advancements, mergers, and acquisitions, and partnership efforts with car manufacturers, which are crucial dynamics influencing the semiconductor industry.
Summary
In the intricate dance of innovation and functionality, semiconductor chips play a starring role in the automotive industry, driving progress in electric and autonomous vehicles, and redefining our relationship with cars. From the vast array of ECUs and EPS systems to the intelligence of ADAS, semiconductors are the lifeblood of the modern vehicle. While the global chip shortage presents significant challenges, the industry’s resilient response and strategic partnerships hint at a future ripe with potential. The role of leading market players like Texas Instruments, NXP Semiconductors, and Intel is pivotal as we steer towards a future where our vehicles are not just modes of transport, but intelligent companions on our journeys.
Frequently Asked Questions
What is semiconductor used in car?
Semiconductors are used in cars to power safety systems like airbag deployment, ABS, and stability control, ensuring effective response in the event of a collision or loss of control.
Who makes most semiconductors for cars?
Infineon Technologies AG, NXP Semiconductors N.V., and Renesas Electronics Corporation are the leading manufacturers of semiconductors for cars. Infineon’s market share for automotive semiconductors was estimated at around 12.7 percent in 2021.
Do electric cars need semiconductors?
Yes, electric cars need semiconductors to facilitate the conversion of electrical energy from the battery into power that drives the vehicle’s motor. Without semiconductors, this conversion process would not be possible.
Is there still a semiconductor shortage for cars?
Yes, there is no longer a major semiconductor shortage for vehicle production. Supply levels now allow for production of 22 million units of light-vehicle production every quarter, and the number of units lost in 2023 mid-year is significantly lower than in 2021.
What are the key functions of semiconductor chips in modern cars?
Semiconductor chips in modern cars are crucial for managing engine operations, motor controls, fuel injection, and various vehicle systems, ultimately enhancing safety and performance.