Driving the Future: How AI and Semiconductors Are Revolutionizing the Automotive Industry
The automotive industry has experienced some substantial shifts in recent years, including the drastic impact of the semiconductor shortage. As the industry continues to evolve, it is critical to not only realize the significance of these developments but be able to understand the effect that market changes are having on the semiconductor industry.
Among the industry’s recent advancements is the adoption of artificial intelligence (AI). Current reports show that autonomous driving, which is majorly reliant upon AI, will make up 10-15% of new car sales by 2030. This popularity shows a dramatic change in the industry, where automakers are growing more dependent on software and machine learning (ML) in vehicles, as high-speed memory, data storage system, and memory technologies are critical for self-driving capabilities. At the heart of these advancements are semiconductors that drive innovation and enable new functionalities.
In this blog post, we will explore the transition from traditional to software-defined vehicles, the semiconductor industry’s pivotal role in this transition, and what it means for auto manufacturers moving forward.
The Transition to Software-Defined Vehicles
According to a Micron report, 90% of fatal vehicle accidents in the U.S. in 2017 were due to human error, which, in part, has started moving attention towards more autonomous driving. Currently, the auto industry is seeing significant growth in the popularity of software-defined vehicles (SDVs), which lay the foundation for self-driving capabilities.
Software inside vehicles is growing more valuable as well. In 2022, the value of software in a car was estimated to be around 20% of the car’s cost, and this number is expected to double by 2030, reaching over 40%. Let’s explore some of an SDV’s most critical features as its value and utility continue to evolve:
- Centralized Computing Architecture. SDVs feature a centralized computing architecture where most of the vehicle’s functions are controlled by a few powerful processors rather than numerous Electronic Control Units throughout the vehicle. This simplification facilitates easier updates and streamlined performance.
- Over-the-Air Updates. These vehicles can receive software updates remotely, which allows for continuous improvement of the vehicle’s software, adding new features, fixing bugs, and enhancing security without requiring a service center visit.
- Advanced Connectivity. SVDs are equipped with high-speed internet connectivity, enabling real-time data exchange with cloud services, other vehicles, and infrastructure. This connectivity supports features like real-time traffic updates, remote diagnostics, and enhanced navigation.
- Customizable User Experience. The software-centric nature of SDVs allows for highly customizable user interfaces and experiences. Drivers can personalize settings, displays, and vehicle systems to their preferences.
- Enhanced Autonomy. SDVs are foundational to the development and deployment of autonomous driving technologies. The centralized software controls enable more sophisticated algorithms for sensor fusion, decision-making, and vehicle control.
- Integrated Ecosystem. SDVs often come with an integrated ecosystem of apps and services, allowing drivers to access a range of digital services, including streaming services, navigation aids, and vehicle-specific apps.
These innovative features of SVDs are growing traction among car owners. By 2030, the SDV market is expected to reach up to $30 billion USD. However, these attributes require machine learning and high functioning software, introducing complexities in order to verify the use of AI in vehicles. Among these complexities are the automotive sector’s rigorous standards for reliability, safety, and performance, as well as other considerations like data privacy and security. This is where semiconductors come in.
The Critical Role of Semiconductors
Hardware lies at the foundation of each AI application. As the AI market for auto continues to grow rapidly, semiconductors will remain at its heart, greatly contributing to its growth. Currently, cars require between 1,000-3,500 semiconductors to function, and the number of chips will only continue to rise as technology continually advances.
As demand for AI applications increases, the semiconductor industry will have to keep up, supplying chips that meet desired computing and memory capabilities. This starts in the manufacturing process, where the semiconductor industry has already started to introduce AI to optimize production lines, improve operational efficiency, and enhance product quality. Its predictive maintenance and quality control capabilities help uphold product excellence by streamlining production and minimizing interruptions and anomalies. But AI’s usage in the industry extends past the manufacturing stage.
Today’s AI chips are rather large due to memory and storage capacity needs. The technology stack requires more hardware to meet these needs, which will allow the semiconductor market to be responsible for 40-50% of the value of the stack itself. This makes semiconductors a huge contributor to machine learning, and, by extension, its usage in the auto industry.
The marriage between software and hardware enables autonomous vehicles to have increasingly desired features, among them the critical central processing unit (CPU) which processes large quantities of data in real time and provides key insights to improve the functionality of the vehicle. Other features include hardware elements like sensors and cameras that enable the vehicle to learn from incidents and assess future situations, and predictive analysis capabilities that recognize potential hazards. This is possible through the combination of hardware and software that use sensors to collect real-time information about the environment, driver behaviors, and the vehicle performance itself.
A Partner to Navigate the Road Ahead
The future of semiconductors in the automotive sector is bright, and will very likely revolutionize driving experiences and pave the way for smarter, safer, and more connected vehicles. But semiconductor manufacturers have a large responsibility to meet increasing consumer demands, and require an industry expert that understands the unique needs of each fab and can cater to exacting requirements.
With high pressure to deliver advanced chips while navigating the shifts in the automotive landscape, it’s important to ensure fabs have all the equipment needed to produce quality supply. AES is an industry leader that specializes in high and ultra high purity gas delivery and purification systems that can help you exceed the standard for chip production and quality. Contact us today to learn how we can help.
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