Selection of 4 Key Growth Factors for the Automotive Semiconductor Market
| Electrification, Infotainment, Autonomous Driving, Cyber Security
Implement security at all nodes within the vehicle

As electrification accelerates, automobiles have now become computers on wheels. And they are demanding increasingly more chips.

Microchip Technology held a press conference in Samseong-dong, Seoul on the 9th to introduce its automotive solutions.

Microchip is expanding its influence in the semiconductor market through continuous mergers and acquisitions. Microsemi, acquired last March, played a significant role in expanding Microchip's automotive business. Microchip was able to strengthen its portfolio in areas such as PCIe switches, inductive sensor interfaces, FPGAs, SiC diodes, MOSFETs, and SBDs.

Last year, Microchip recorded sales of $6 billion, equivalent to approximately 7.092 trillion won. Of this, the automotive business accounted for 17% of total sales. This ranks second after the industrial business, which accounted for 27%.

Microchip identified four major growth factors for the automotive semiconductor market and introduced strategies based on them.

The first is electrification. As environmental regulations become stricter day by day, automotive OEMs are increasing their investment in electric vehicles. Numerous applications are installed in electric vehicles and hybrid electric vehicles. These include an electric motor, AC/DC converter, DC/DC inverter, onboard charger, charging port, battery management system, thermal system, e-sound, regenerative braking system, etc.

Among them, On Board Chargers (OBCs) are a promising sector expected to grow at an average annual rate of 52% until 2022. The electric inverter sector is also expected to grow at an average annual rate of 11% until 2023. Microchip has a diverse range of products in both sectors and shortens time-to-market and reduces consumer risk through reference designs, firmware, and security and safety support.

e-Sound refers to a virtual sound installed in electric vehicles that produces sounds such as engine noise. Electric vehicles produce quieter sounds than conventional cars. Consequently, pedestrians may not notice an approaching electric vehicle. In the United States and Europe, e-Sound must be mandatory in all electric vehicles within the next one to two years. Microchip possesses e-Sound reference designs utilizing Ethernet/AVB, MOST, and INICnet, and has an MCU roadmap for audio applications.

The second factor is the activation of HMI and automotive infotainment. While the growth rate of the finished vehicle market has stagnated at a single-digit annual rate, the automotive infotainment market is growing more steeply. Microchip is equipped with scalable 1D/2D/3D HMI systems. This supports in-vehicle displays that become larger and change into various shapes. In addition, FuSa support and verified libraries aim to enhance user convenience and driving safety.

Automotive infotainment is subject to strict regulations by governments around the world due to safety concerns. Therefore, touchscreens will be placed in unexpected locations and complex sound systems will be installed.

Microchip's INICnet (Intelligent Network Interface Controller networking) technology is a synchronous, scalable solution that significantly simplifies the deployment of audio and infotainment systems, enabling seamless networking in vehicles with Ethernet-oriented system architectures. INICnet can be effectively utilized in infotainment, sound systems, voice assistants, eCall, and active noise cancellation applications.

The third is the full-scale implementation of ADAS and autonomous vehicle technologies. McKinsey predicts that 15% of vehicles manufactured in 2030 will be fully autonomous. High-performance computing is essential for this.

Microchip does not manufacture in-vehicle computers, ADAS controllers, or sensors. However, it provides the connectivity features that link all of them.

The fourth factor is the increasing need for automotive cybersecurity. The maturation of autonomous vehicle technology and the widespread adoption of connected cars are driving up demand for security certifications. The automotive security endpoint market is projected to grow at an annual rate of 12% from 2019 to 2026. Microchip is currently reviewing ISO/SAE 21434 to support scalable and flexible security solutions for future automotive security.

Microchip supports various ECU architectures for in-vehicle network security and supports secure boot at each node. Microchip's ultimate goal is to implement security at every node within the vehicle.

Dr. Matthias Kästner, Vice President of Microchip’s Automotive Business Unit, said, “Microchip has been in business for a long time as one of the top ten automotive semiconductor suppliers in the world as of 2018 and possesses a proven portfolio,” adding, “We will not stop at supplying products but will provide scalable solutions to keep up with changing trends.”

In addition, the company stated, “The automotive sector is the second most profitable for Microchip after the industrial sector,” adding, “We plan to continue maintaining our leading position in this market by strengthening our portfolio for the rapidly growing autonomous vehicles and automotive cybersecurity.”