Director Hong Seung-soo of Etipos Co., Ltd. is giving a lecture.



Entry Barriers to Automotive Semiconductor Design and Manufacturing; Impact from Defects, Safety Issues, and Recalls
The automotive semiconductor market size reached $68 billion in 2022, accounting for 12% of the total.

It has been suggested that the automotive and semiconductor industries need to cooperate with each other, as the growth of the domestic automotive semiconductor industry is insignificant, with the domestic automotive semiconductor industry's dependence on overseas sources reaching 98%. On the 22nd and 23rd, the Korea Institute of Trade, Industry and Energy held the '2022 New Technology and Safety & Security Seminar for Building and Advancing the Autonomous Vehicle Ecosystem,' which shared general information on autonomous vehicles, including strategies for promoting digital transformation to strengthen the competitiveness of domestic future car companies, the current status of autonomous vehicles at home and abroad, and trends and key issues regarding related technologies, laws, and systems.

On the 23rd, Etipos Co., Ltd. Director Hong Seung-soo, Korea Electronics Technology Institute Mobility Platform Research Center Head Lim Ki-taek, and Sonnet Co., Ltd. Chairman Son Jun-woo took the stage as speakers to present on C-ITS projects, V2X communication semiconductor technology trends, and innovative cases of new autonomous driving technologies.

Lim Ki-taek, Director of the Mobility Platform Research Center at the Korea Electronics Technology Institute, who presented on V2X semiconductor technology trends on this day, argued that the domestic semiconductor and automotive industries must cooperate with each other.

According to his presentation materials, ChaThe cost of using semiconductors for one vehicle is $280 to $350 for autonomous driving levels 2 to 3, and over $1,150 for levels 4 or higher.

As a result, the size of the automotive semiconductor market has also grown. The automotive semiconductor market, which was $34 billion in 2016, doubled to $68 billion in 2022 and grew to account for 11.8% of the total semiconductor market.

The automotive semiconductor market is growing year after year, but the growth of the domestic industry is minimal.

There are very few domestic system semiconductor design companies, with only 78, and fewer than ten automotive semiconductor design companies among them.

Center Director Im analyzed that one reason is the existence of high entry barriers in the design and manufacturing of automotive semiconductors. Compared to other fields, it requires high investment (in terms of money, personnel, and time) but yields low profits. There is also a risk of suffering significant damage if issues such as defects, safety accidents, or recalls arise.

Director Lim stated, “We rely on overseas sources for 98% of automotive semiconductors,” adding, “A cooperative system between the automotive and semiconductor industries is necessary.”

Director Hong Seung-soo stated that C-ITS projects are actively underway both domestically and internationally. The U.S., the EU, and China are currently conducting technology verification and testing.

Korea has also been steadily conducting C-ITS demonstration projects since the start of a pilot project in 2014. In the highway C-ITS project conducted for approximately one year starting in 2018, 26 services (safety, road management, and traffic management) were put to the test. Safety services include 16 items, such as rear-end collision prevention and guidance services for black ice warning zones ahead. Road services include 4 items, such as emergency vehicle approach notification services and location-based traffic information provision services. Finally, traffic services include six items, such as road work control services and pavement damage detection services.

Director Hong also shared future C-ITS business plans. It appears that steady business operations will be carried out, including completing the LTE-V2X demonstration by 2022 and establishing a 2,400km section using WAVE+C-V2X Dual mode by 2023.