Automotive Chipsets in High Demand as EVs and ADAS Expand - scn.kepolirik.com

Automotive chipsets now sit at the center of the car’s transformation, as EVs and ADAS scale and reshape how vehicles are designed, built, and serviced. For buyers, engineers, and investors, the core challenge is straightforward: modern vehicles demand much more compute, power electronics, and sensing than before, while supply and expertise have struggled to keep pace. If your next car feels like a smartphone on wheels—or if certain trims arrive late—the reason lies deep in silicon. In the next few minutes, you’ll see what’s inside an EV or ADAS stack, why demand keeps rising, where the supply chain still creaks, and the practical moves companies can make to get ahead.

EVs and ADAS: The twin engines driving the automotive chipset surge

Two forces dominate the upswing in automotive chip demand: electric vehicles (EVs) and advanced driver-assistance systems (ADAS). EVs draw on high-efficiency power electronics to convert and manage energy end to end—from battery to inverter to motors. ADAS layers on sensing, compute, and memory so the car can perceive its surroundings and decide quickly. Together, they multiply silicon content per car while pushing automotive-grade reliability to the forefront.

The EV wave is unmistakable. The International Energy Agency expects global EV sales to hit about 17 million in 2024, up from roughly 14 million in 2023, bringing the market close to one in five new cars sold worldwide. Higher adoption is pulling in more silicon carbide (SiC) MOSFETs and IGBTs for traction inverters, faster onboard chargers, and increasingly capable battery‑management ICs to stretch range and improve safety. Legacy microcontrollers for body, chassis, and HVAC still matter—and in many EVs, there are actually more of them.

ADAS, meanwhile, is the other big engine of demand. Automatic emergency braking, lane-keeping, adaptive cruise control, and parking assist rely on cameras, radar, and sometimes lidar, all feeding high-performance SoCs and accelerators that run perception and fusion algorithms. Regulators are lifting the baseline. In the United States, most new light vehicles must include automatic emergency braking by 2029, speeding the adoption of core ADAS components. Europe and other regions are moving in parallel on safety and driver-monitoring mandates. The result isn’t only more chips—it’s more advanced devices with higher thermal and memory budgets.

Analysts estimate semiconductor content per vehicle has climbed from a few hundred dollars in basic internal-combustion cars to roughly $1,000–$2,000 in premium EVs with advanced ADAS—and higher still for hands‑free highway systems. Bottom line: more sensors, more power devices, more memory, and far more compute have become standard ingredients, which is why automotive chipsets are seeing sustained, structural demand.

What goes into an EV or ADAS stack: the essential chip categories

Automotive chipsets span a wide range of devices, each optimized for a specific role. Knowing the categories helps explain why some parts are scarce or command a premium. At a high level, EVs lean on robust power semiconductors and battery‑management ICs, while ADAS depends on high‑throughput SoCs, image signal processors, and an array of sensors. Across both domains, you’ll find microcontrollers for control loops, memory for fast data access, connectivity for telematics, and specialized analog and mixed‑signal devices for power management, sensing, and actuation.

Below is a practical snapshot of the main chip types in modern vehicles, their roles, and a few representative suppliers and platforms to explore.

Chip category	Primary role in EVs/ADAS	Examples to explore
Power semiconductors (SiC, IGBT, MOSFET)	Traction inverters, DC-DC, onboard chargers; high-voltage switching efficiency	Infineon CoolSiC, Wolfspeed SiC, onsemi EV power
Microcontrollers (MCUs)	Body, chassis, BMS control loops; safety-critical logic	NXP S32, Renesas RH850/R-Car
ADAS/Autonomous SoCs & accelerators	Perception, sensor fusion, path planning; AI workloads	NVIDIA DRIVE, Qualcomm Snapdragon Ride, Mobileye EyeQ
Image signal processors (ISP) and vision ICs	Camera image cleanup, HDR, object detection pre-processing	On-chip ISPs in DRIVE/Ride; independent ISPs from multiple vendors
Radar, lidar, and ultrasonic ICs	Environment sensing across weather and light conditions	77 GHz radar transceivers, lidar receiver ASICs (various suppliers)
Memory (LPDDR, GDDR, flash)	High-bandwidth buffers for perception; non-volatile storage for maps, OTA	Automotive-grade LPDDR/GDDR; eMMC/UFS; NOR/NAND flash
Connectivity (Wi‑Fi, 5G, C‑V2X)	Telematics, OTA updates, vehicle-to-everything communications	Automotive 5G modems and C‑V2X chipsets (multiple vendors)
Power management and analog/mixed-signal	Voltage regulation, battery sensing, motor control, signal conditioning	PMICs, gate drivers, ADC/DAC chains, current sensors

To reach the TOPS‑per‑watt needed for real‑time vision, many ADAS SoCs are built on advanced process nodes. Foundries provide dedicated automotive flows for functional safety and longevity; for example, TSMC’s automotive-grade processes target reliability and extended lifecycles. Regardless of node, automotive chips must clear rigorous qualifications like AEC‑Q100 and align with ISO 26262 for functional safety. That mix—diverse chip types, cutting-edge nodes for ADAS, and strict quality gates—highlights both the complexity and the opportunity in automotive silicon.

From wafer to wheel: supply chain realities, safety, and long lifecycles

Automotive silicon operates in a different world than consumer electronics. Qualification, safety, and longevity outweigh rapid iteration. A smartphone chip might be designed, built, and replaced in two years; vehicle platforms often run seven to ten, with service parts supported even longer. Suppliers are expected to guarantee availability, quality, and firmware support for a decade or more, and automakers must architect for stability and patchability.

Automotive-grade parts face environmental and reliability testing well beyond consumer norms—temperature cycling, humidity, vibration—aligned to standards such as AEC‑Q100 for ICs and PPAP for production validation. Any function touching vehicle control passes through the ISO 26262 safety lens, with ASIL levels dictating redundancy and diagnostics. As ADAS capability grows, cybersecurity and software lifecycle rules follow; UNECE R155 (cybersecurity) and R156 (software updates) mandate secure development and disciplined over‑the‑air update management.

Capacity adds another constraint. ADAS SoCs lean on advanced nodes, while MCUs and power devices rely on mature nodes and specialty materials like SiC that can be just as supply‑limited. SiC has been especially tight; crystal growth, wafering, and epitaxy remain complex, and only a handful of companies have fully integrated capacity. Major players are spending heavily on new fabs—see Wolfspeed’s Mohawk Valley SiC fab and expansion moves from others—to meet EV inverter demand through the late 2020s.

The last few years exposed how fragile the chain can be. In 2021–2022, shortages of automotive microcontrollers and power devices delayed millions of vehicles globally; one analysis put the cost to automakers at over $200 billion. Lead times largely normalized through 2024, yet pockets remain sensitive—especially specialty analog and certain MCUs. Governments responded with industrial policy, including the U.S. CHIPS and Science Act and Europe’s IPCEI programs, to localize or diversify production. The upshot for automakers and suppliers is clear: design resiliently, forecast collaboratively, and treat silicon as a strategic asset—not a commodity.

How to avoid the next shortage: practical steps for automakers and startups

Smart planning and modular design can turn chip risk into an advantage. Start with architecture. Moving to domain or zonal controllers cuts unique ECUs, centralizes compute, and simplifies updates. When fewer, more capable controllers run body, chassis, infotainment, and ADAS domains, you can dual‑source at the chipset level and reuse common software stacks more easily. Pair that with an abstraction layer that decouples apps from specific silicon; if a preferred MCU or SoC goes scarce, an alternate path exists without a wholesale rewrite.

Second, lock in critical-path parts early with multiyear agreements and volume flexibility. It’s especially important for SiC power modules, radar transceivers, camera sensors, and high‑bandwidth memory. Share realistic ramps and buffer needs with Tier 1 and semiconductor partners; better data enables better wafer starts. During the 2021 crunch, some OEMs even rewrote firmware to qualify substitutes; a high‑profile case involved reworking code to support different microcontrollers, keeping shipments moving. Such an outcome gets easier when you plan for it up front.

Third, design for testability, traceability, and over‑the‑air updates from day one. OTA doesn’t just add features; it reduces silicon risk by allowing post‑production firmware fixes, calibration improvements, and even ADAS model upgrades. Align with R155 and R156 so security updates become routine capability, not emergency patches. Combine OTA with rich telemetry to monitor field reliability, then feed those insights into supplier scorecards and future sourcing.

Finally, think lifecycle. Validate roadmaps and longevity commitments with chip vendors. Confirm automotive‑grade variants, second sources for key functions, and pin‑to‑pin compatible options where possible. For power electronics, weigh 800 V architectures and SiC today against IGBT cost advantages for lower‑power platforms; for ADAS, evaluate total cost of compute per watt, not just TOPS. Companies that treat chipsets as a product line—complete with architecture, vendor strategy, and software plan—ship more consistently, scale globally, and delight drivers.

Quick Q&A: common questions about automotive chipsets, EVs, and ADAS

Q: Why are automotive chipsets so critical now?
A: EVs need efficient power conversion and battery control, while ADAS depends on heavy compute and precise sensing. Because these functions affect safety and energy use, reliability and performance move to center stage. Chips have shifted from supporting roles to the core of the vehicle’s value and differentiation.

Q: Do EVs need silicon carbide, or can they use legacy IGBTs?
A: Both are in play. SiC usually delivers higher efficiency—especially in 800 V systems and at higher switching frequencies—enabling smaller inverters and more range. IGBTs remain cost‑effective for lower‑voltage or lower‑power designs. Many platforms are migrating to SiC as costs fall and capacity grows.

Q: Is ADAS worth it if I don’t want full self‑driving?
A: Yes. Features like automatic emergency braking, blind‑spot monitoring, and lane‑keeping assist can cut crash risk and ease workload. Regulations are also making several features standard. Set realistic expectations: ADAS supports the driver; it doesn’t replace responsible driving.

Q: Will chip shortages return?
A: Market conditions look far steadier than in 2021–2022, and suppliers have added capacity. Even so, tightness can reappear in specific categories—certain MCUs, analog parts, or SiC devices—when demand outruns wafer starts. Resilient design, dual sourcing, and early supplier engagement lower the odds.

Q: What about data privacy and cybersecurity in connected cars?
A: Vehicles increasingly collect and transmit data for safety and services. Standards and regulations (including UNECE R155/R156) require cybersecurity management and controlled software updates. Consumers should review privacy policies, and manufacturers should bake security into both hardware and software from the outset.

Conclusion: the road ahead for automotive chipsets

Automotive chipsets are in sustained high demand because EVs and ADAS keep expanding what cars must do: convert energy cleanly, perceive the environment, compute quickly, and stay secure over long lifecycles. We covered how EV power electronics, battery‑management ICs, and high‑voltage devices converge with ADAS sensors, accelerators, and memory to multiply silicon content per vehicle. We also unpacked automotive‑grade qualification, specialty materials like SiC, and the regulatory push making advanced safety standard worldwide. Most important, we mapped out practical steps—architectural modularity, software abstraction, multiyear sourcing, OTA capabilities, and lifecycle planning—that help companies avoid repeat shortages and ship great products at scale.

If you work in product, purchasing, or platform engineering, elevate silicon strategy to a top‑tier priority. Map your bill of materials to the categories in this article, flag single points of failure, and engage two suppliers for every critical part. Align software plans with silicon roadmaps, and build for updates so vehicles improve over time. Founders and investors should focus on technologies that deliver watts saved, safe miles driven, or software‑defined value per chip dollar—those are the levers the market will reward.

Ready for the next step? Audit your platform for silicon risk within two weeks, set dual‑source targets for your top ten components, and publish an internal OTA and cybersecurity readiness checklist. Share what you learn with partners; transparent, data‑driven supplier relationships will win the next cycle.

The car is becoming a resilient, upgradeable computer on wheels. Build with humility, test with rigor, and ship with confidence. Which part of your stack will you make more robust today?