Bernard Murphy learns more from Kurt Shuler on the shifting landscape in the automotive electronics value chain in this new SemiWiki blog:
Where's the Value in Next-Gen Cars?
June 22th, 2020 - By Bernard Murphy
Value chains can be very robust and seemingly unbreakable – until they’re not. One we’ve taken for granted for many years is the chain for electronics systems in cars. The auto OEM, e.g. Toyota, gets electronics module from a Tier-1 supplier such as Denso. They, in turn, build their modules using chips from a semiconductor chip maker such as Renesas, who produces their chips using pre-packaged functions from IP providers like Arm. Toyota could do the whole thing themselves, but it’s very expensive to set-up and maintain all of that infrastructure. Specialization makes it all more practical. Everyone makes money doing their bit well and cost-effectively and being able to sell to multiple customers (Toyota, GM, BMW, etc.). However, that cash flow can be upended when disruptive innovations are thrown into the supply chain, in this case, a lot more intelligence and autonomy. I talked to Kurt Shuler (VP Marketing at Arteris IP) to get his view. Kurt is an IP supplier and has a unique viewpoint because he works with semis, Tier-1s and OEMs, with standard designs as well as newer AI-based designs. He’s also an active member of the ISO 26262 committee.