▲Kim Eui-yeol, Vector Korea Process Solutions Division Manager


Tier 1, platform supply 0.5 Tier, SW or some HW supply 1.5 Tier role expected
Raising the possibility of 1.5-Tier by partnering with OEMs without going through Tier2 and Tier1
“Tech companies such as Amazon, Google, and Naver may operate as Tier 1 or Tier 2”

Experts have suggested that the key success factors in the paradigm shift and architecture of vehicles toward software-centricity driven by software-defined vehicles (SDVs) are partnerships and close collaboration that establish new roles.

Kim Eui-yeol, head of the Process Solutions Business Unit at Vector Korea, presented on the topic of ‘Latest Trends in SDV Architecture’ at the e4ds webinar and explained the concepts, features, and development trends related to SDV.

This webinar is designed to help you understand the changing trends in the automotive industry, which has a significant impact on the manufacturing industry, as it shifts to software-centricity, as well as the definition and characteristics of SDV.

Kim, the head of the business division, said, “In the past, the smartphone business had a large price fluctuation due to factors such as camera resolution, but the value of applications connected to software and various industries has become very important.” He added, “The automobile industry is also following the SDV trend and its business models are changing to software.” He said, “It is changing to a central location.”

He continued, “This change in the automobile industry is expected to create business models that are larger and broader than those in the mobile phone market,” and emphasized, “Companies that respond proactively will thrive, while those that fail to recognize it will struggle.”

The core of SDV (Software Defined Vehicle) is to provide value to customers through services, and updates are possible through the cloud even after the vehicle is released via OTA, maintaining the latest performance and downloading new features to use.

Current technologies such as Android Auto and proprietary systems are limited to infotainment apps (radio, navigation, etc.) that the Vehicle OS can install and update.

Ultimately, it will go beyond infotainment to improve vehicle performance and create new value by linking with other industries. In the near future, it is expected that automobiles will be able to link with industries such as logistics, shopping, and leisure, as well as improve performance such as batteries and torque.

To implement this, it is necessary to increase the number of cores, multi-threads for parallel processing, and virtual machines for software to be able to process complex and precise functions quickly and accurately.

Ultimately, high-performance computing (HPC) is essential to make these things possible.

It is necessary to address technically complex challenges, such as a centralized architecture based on high-performance computers, an Ethernet communication backbone for fast data transmission, and enhanced connectivity with the cloud to receive external information and strengthen interfaces.

Long lead times in the safety-conscious automotive industry There is a need to transition to a development environment that allows for short and continuous updates.

This technological paradigm shift requires a change in architecture, which means changes in development organizations, processes, and development toolchains.

Existing vehicle controllers have been structured based on functions, but in the future, many functions will be integrated and networks will be structured based on HPCs.

Functions that perform complex and fast calculations are handled by computers, while simple sensing and actuation are handled by existing controllers.

These changes mean that existing controllers become somewhat simpler, and the size and complexity of functions implemented in HPC increase.

The roles of OEMs and suppliers are completely changing in the architectural change trend.

OEMs will act as software experts and play a role in integrating HPC, while existing Tier 1s will likely take on the role of Tier 0.5, supplying complete platforms, or Tier 1.5, supplying software or parts of hardware.

Existing Tier 2s may become 1.5-tiers by partnering directly with OEMs without going through Tier 1, and new players such as tech companies like Amazon and Google may become Tier 1s.I expect to be active like me 2.

Kim emphasized that partnerships where each party learns from the other and establishes new roles in these changing roles are key success factors for the SDV trend.

Kim Eui-yeol, head of the business division, mentioned the Illusion Phase while explaining how OEMs will change. “The Illusion Phase refers to the ‘illusion’ that OEMs develop all software and OS in-house and that there is no need for Tier 1. The period when this illusion is shattered is called the Phase of Disillusionment.” He added that “It is nearly impossible to develop everything in-house and understand all source code, and the Volkswagen case supports this.” He also mentioned the story of Volkswagen establishing a software group called CARIAD and attempting to develop everything in-house, but failing and undergoing restructuring.

Overseas OEMs and suppliers have been preparing for SDV for a long time and have reached the stage of discussing technical details, but Korea is still in the stage of defining and developing the direction of SDV and developing the concept, and in terms of technology, Korea is at least 2-3 years behind.

Kim Eui-yeol, head of the business division, once again emphasized that close collaboration among domestic companies is necessary to narrow the gap with global companies.

In the Q&A session following the presentation, when asked about the impact of SDV on non-complex actuators or sensors and what preparations should be made, Division Manager Kim Eui-yeol gave an honest answer, saying that companies that supplied these or Tier 2s would face difficulties in the future.

He said, “I am well aware that many companies are struggling,” and “since the prevailing view is that they will face difficulties, they will have to change their business models.” He replied, "It seems to be."

※ Announcement
We would like to thank everyone who watched 'Latest Trends in SDV Architecture' with Vector Korea on December 8th.
We would like to answer all the questions our readers and viewers have sent us, but please understand that due to time constraints we are unable to provide all the answers.
We have compiled the security-related questions and other questions that many people have left in the comments and forwarded them to Vector Korea.
Even if it takes some time, we will try to answer readers' questions through articles.
Once again, thank you to everyone who showed interest in the e4ds webinar.