│ Automobile semiconductors have recently become a hot topic
In the first quarter of this year, we saw a flood of reports speculating that the semiconductor supply shortage will cause a decline in the production of automobiles until the end of 2021. Major car manufacturers such as GM, Ford, Daimler, and BMW were scrambling to secure semiconductor chips. According to the UK-based market research institution IHS, around 670,000 cars worldwide were tied up at the production stage in the first quarter of 2021 alone due to the shortage of semiconductors.
│ Automobile semiconductors are essential to the car manufacturing process
So, the question lies, why are these semiconductors so important for car manufacturing? What role do these little chips play in vehicular support? That is the topic that this article will cover: The Installment of the Core of Future Automobiles – “Automobile Semiconductors”. This has been a burning topic all over the world for the past year. At first glance, you might not feel as enthusiastic about this particular issue, but we are confident that our readers will find it as fascinating as we do.
│ Automobile software is a core component of automobiles
So, what are these Automobile Semiconductors? The Automobile Semiconductors are core components that determine the computing capabilities of automobiles. What does that mean? Simply put, it is the brains of the car that runs your infotainment, digital cockpit, and much more.
Over the last century, the core of automobile technology was known for its precision engine technology, cutting-edge gearboxes, and power systems. Global car manufacturers led the Industrial Revolution using such technologies. This may seem outdated if we compare them to the current cars.
So, how do the cars run today? What is inside these engines and the cockpit that makes it so different from 50 years ago? In our current society, it has become crucial for cars to implement information technology that allows cars to communicate with each other and provide convenient displays that offer various forms of entertainment. In other words, software that controls hardware has taken over as the core component. In order to strengthen such important software, automobile semiconductors with outstanding computing capacity have become vital to car manufacturing. Especially to modern cars.
One of the first things that come to mind when we think about future cars, we immediately jump to electric vehicles. Just like modern cars, these electric vehicles, or short, EVs, are even more reliant on semiconductors than any other cars out in the market. Without these semiconductors, EVs would be nothing but an immobile decoration to your garage.
│ The latest cars are installed with various functions beyond simple transportation methods
Future Vehicles will no longer be just a means of transport. It will be an entertainment device on wheels. It will be a mobile home that can take you to your next location in a matter of hours, without causing damage to the environment like most fuel-driven cars do. But to be able to perform as listed above, these cars will need these semiconductors to function properly. It is the central component to making a luxurious electric vehicle, such as Tesla and Polestar, move. Drivers will be able to do so much in their cars. As such, the importance of automobile semiconductors is continuing to rise.
│ Self-driving cars operate using sensor analyses based on automobile semiconductors
Let’s use the self-driving car as an example to show the audience just how important these semiconductors are. Artificial Intelligence (AI) in all self-driving cars uses cameras and other sensors around the car to analyze traffic, distance, and many other components to drive itself without getting into an accident. All of these calculations and analyses that are made by AI are implemented and integrated into our cars and are run by semiconductors.
│ Self-driving cars use semiconductors to automatically transmit and update various data as they drive
If we dive into the details, we can see that self-driving cars are capable of identifying and processing precise information on people, objects, roads, and buildings from approximately 200m distance. In addition, they transmit collected data to traffic systems and receive new information. Self-driving cars and road conditions change constantly in real-time, thereby producing large volumes of frequently changing data. By receiving and sending these different data, these self-driving cars are what makes them so fully autonomous. But the management of such data requires tremendous power. This is where Automobile Semiconductors starts to use image sensing in order to create stability and a great autonomous self-driving experience.
│ Automobile semiconductors are essential for controlling batteries that are central to electric vehicles
What about Eco-friendly vehicles then? Do Eco-friendly vehicles depend on these semiconductors as well? Vehicles that are environmentally conscious about the fumes that most gasoline and diesel cars release also heavily depend on electronic systems. When we look inside these different electronic vehicles there is clearly a system that is driven by electronics that cannot function without an ecosystem that runs the entire cockpit. It is difficult to say what would happen to modern cars if these semiconductors were not to be part of the whole unit.
│ Automobile semiconductors as core components of future cars
Semiconductors are divided into two types: 1) memory semiconductors, and 2) non-memory semiconductors. Memory semiconductors are mass-produced for each product type and serve as storage. Non-memory semiconductors are produced in small batches for multiple product types and services to analyze and process information. Automobile semiconductors are among the latter, non-memory semiconductors. Non-memory semiconductors occupy 60% of the entire semiconductor market and require advanced design technology, thereby resulting in high prices and added value.
│ Automobile semiconductors as core components of future cars
Non-memory semiconductors are not solely used for automobile semiconductors. They are also used in various smart IT devices, including home appliances, 5G smartphones, video game consoles, and computer graphics cards. The demand for such devices has grown exponentially with the contact-free boom in the wake of the COVID-19 pandemic. This has also led to increased demand for automobiles, causing dilemmas for the semiconductor manufacturers to keep up with the influx of sales.
│ Automobile semiconductors are completed through complex manufacturing processes
In general, Automobile semiconductors and non-memory semiconductors require at least six months for complete production and delivery. They are based on sophisticated technology, which requires a significant amount of time. Not to forget that these resources need a significant time for quality control as well. To ensure the quality of the products, these semiconductors must go through a thorough inspection that ensures the safety, completion quality, facility investment, and design capacity. As such, new manufacturers face high standards to enter the market.
In this regard, many car manufacturers are intensifying their efforts to ensure stable production, acquisition, contracts, and strategies for automobile semiconductors. They are also conducting M&A and collaborating with global startups that possess original technology used in self-driving cars or global companies that possess technologies such as semiconductor systems, and mobility companies. On top of these tremendous efforts, many companies are seeking to invest more towards their R&D to secure automobile semiconductor technologies independently.
│ Automobile semiconductors as core components of future cars
Now that we have examined automobile semiconductors and discovered their importance as core components of future cars, we want to make sure that we do not neglect or forget to appreciate the value of the small things in life.
In reference to these important technological advances, LG Electronics is trying to bring the future vehicular systems to your doorsteps. We hope that you’re looking forward to the automobile technologies and software that LG Electronics is developing in 2022 and we hope to provide you with many surprises.
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