[Chiptalk] Semiconductor Industry Focuses on 'Car Dashboard'... "There Is a Breakthrough Even If Future Car Transition Is Slow"

'Automotive Semiconductors' Expected by the Semiconductor Industry
Active Businesses Related to Samsung Electronics and SK Hynix

News of Delays in Electric Vehicle and Autonomous Vehicle Projects
Considered a "Significantly Growing Sector" in Technological Development Trends

As the introduction speed of electric vehicles and autonomous vehicles is slower than expected, concerns are being raised in the semiconductor industry, which had anticipated related business opportunities. In this regard, experts emphasize that the direction of technology adoption should be considered more than the speed. It is explained that, from a long-term perspective, automotive semiconductors will become a growth sector that boosts industry profitability.

Automotive semiconductors are the next-generation business opportunity that the semiconductor industry is expecting. This is because as internal combustion engine vehicles evolve into electric vehicles and autonomous vehicles, the number of semiconductors used in vehicles is expected to increase, and their performance will also improve. While an internal combustion engine vehicle contains about 200 to 300 semiconductor chips, electric vehicles are expected to have 1,000 chips, and autonomous vehicles up to 2,000 chips. In the memory semiconductor market, the automotive sector is also expected to emerge as one of the top three application areas.

Samsung Electronics and SK Hynix have concretized their business plans by introducing various automotive semiconductors. Samsung Electronics announced its goal to achieve the number one position in the automotive memory semiconductor market by 2025. In the foundry (semiconductor contract manufacturing) business, it stated that it will complete preparations for mass production of 2-nanometer (nm; 1 nm is one billionth of a meter) automotive solutions by 2026. Additionally, it participated for the first time in the largest European motor show, 'IAA Mobility 2023,' held last September, showcasing various automotive semiconductor products.

SK Hynix also strengthened its automotive semiconductor business by becoming the first domestic semiconductor company to obtain the 'Automotive SPICE (ASPICE) Level 2 (CL2)' certification in June. ASPICE is a software development standard for automobiles established by the European finished vehicle industry. It is used to evaluate the reliability of software development processes of automotive parts manufacturers. Having obtained this certification, SK Hynix announced plans to increase the supply of automotive NAND flash to enhance profitability.

Contrary to the semiconductor industry's expectations, the automotive industry recently appears to be struggling with future vehicle businesses. Due to electric vehicle demand being sluggish compared to market expectations, more automakers are reducing their electric vehicle production targets. General Motors (GM) in the United States recently withdrew its joint electric vehicle development plan with Japan's Honda. Similarly, concerns are emerging as the commercialization speed of autonomous vehicle technology is slower than anticipated.

While the semiconductor industry acknowledges the need to monitor these market trends, it is not overly concerned. Even if future vehicles do not arrive rapidly, the demand for semiconductors used in internal combustion engine vehicles is already increasing. For example, in the past, vehicle dashboards (the area in front of the driver and passenger seats containing various driving instruments) had analog needle gauges, but now they have been replaced by full displays, increasing the number of semiconductors used.

The optimistic long-term market outlook for the future vehicle market also positively influences the semiconductor industry's sentiment. Although the timing and speed of technology adoption may be slower than expected, technological advancement is considered an inevitable trend. Kim Yang-peng, a senior researcher at the Korea Institute for Industrial Economics and Trade, said, "The total number of semiconductors used in vehicles will inevitably increase," adding, "It is correct to view this as a sector that will grow significantly in the future."

Market research firm Omdia forecasts that the global automotive semiconductor market size will grow at an average annual rate of 12.8% until 2026, reaching $96.2 billion.

This content was produced with the assistance of AI translation services.