What’s at stake:
Except for Tesla, no automaker has contrived to roll out an automotive processor of its own. This vacuum, however, has not curbed car OEMs’ deep-seated desire to design chips for their vehicles. Can chip vendors still provide automakers what they want but aren’t doing for themselves, and at what cost? Or, are automakers’ wonderland agenda sending semiconductor companies down the rabbit hole?
Carmakers’ appetite to develop proprietary processors waned as OEMs got occupied in dealing with chip shortages. Their dream of automated consumer vehicles before 2027 is a memory.
Now, replacing the autonomous vehicles, the momentum among carmakers is an industry-wide push for software-defined vehicles. Automotive OEMs are now beginning to think that if the vehicle’s real value will be in software under the new era, they shouldn’t be in the business of just layering their software on top of hardware selected by tier ones.