Kurt Shuler, Vice President of Marketing at Arteris IP is quoted in this new Semiconductor Engineering article:
Auto OEMs Face New Competitive Threats
March 4th, 2021 - By Ann Steffora Mutschler
EVs are creating openings for non-traditional players, creating havoc in the supply chain.
Indeed, changes in the thinking of automotive OEMs have been evident for at least the past five years, when it was clear that the OEMs intended to start making their own chips — ironically to avoid becoming “the Foxconn of cars,” said Kurt Shuler, vice president of marketing at Arteris IP. “Foxconn does things to spec. But the ideas, the intellectual property, the value-added content reside outside. The ODM lives off of very tiny margins. For the Tier 1s, they’ve always been the specialist in mechanical or hydraulic, traditional automotive electronics, things like that. And now they’re seeing that they’re getting attacked from below from their own suppliers, as the chip guys — Infineon, NXP, and others — start to create reference design systems with their own silicon that can be adopted by a Tier 1. But an OEM also could buy that directly and do their own software. So the Tier 1s also are getting attacked from above by the OEMs.”