Overview:
The automotive industry faced a severe shortage of semiconductors during COVID-19. The pandemic also brought to the surface the automotive OEMs and Tier 1s’ inability to master the semiconductor supply chain, excessive pursuit of low inventory, and the JIT (just in time) problem. Innovation and transformation are typically challenging obstacles for large traditional businesses to overcome. Traditional automakers are confronted with numerous challenges, including delays in the development of new vehicles, high costs, and a lengthy and unfamiliar semiconductor supply chain. At the same time, traditional car OEMs and Tier 1 suppliers are concerned about less differentiation of future EVs if they become overdependent on IC design house ADAS/AD chips. Therefore, some car OEMs and Tier 1 suppliers want to develop their own ADAS/AD chips to have more influence over the design of E/E architecture. This report outlines the expected developments in autonomous driving and explains the challenges that automotive OEMs face in creating their own autonomous driving chips.
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Author
Brady Wang
Brady Wang has over 20 years of experience working in high-technology companies, ranging from semiconductor manufacturing to market intelligence and strategic advisory roles. Currently, at Counterpoint, Brady specializes in semiconductors, with a focus on cutting-edge applications such as automotive and advanced process nodes.
