The Impact of IC Chips on the Automotive Industry

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The automotive industry is among the chief beneficiaries of the integrated circuits-an invention that is credited for the technological revolution and advancement across all the spheres of life. IC chips have improved the manufacturing of vehicles, performance, efficiency, and safety. Modern vehicles are very different from older models in many different aspects. And it is not just about the vehicles but also other players in the automotive industry. Think of autonomous cars and electric cars. All such inventions have been motivated by IC chips.  In this article, we are going to discuss the impact of integrated circuits in the automotive industry.

Key applications of IC chips in the automotive industry

Here are some of the key automotive areas that have been vastly affected by the microchips:

Electric vehicles

Currently, electric vehicles rank pretty well among the latest inventions in the automotive industry. There is a global shift from combustion fuel to electric vehicles. Various car makers are trying to outdo each other on who will emerge at the top of this game. At the center of all these developments are the integrated circuits.

IC chips have played various roles in the growth of the EV market. One critical aspect of electric vehicles is power management. They should store enough power that will last them for a specific mile or range. The power management ICs come in handy in the implementation and execution of this task. These microchips are also used for distributing power to all the components of the vehicle and as well as protecting various components from the dangers of high current and voltage.

Artificial intelligence in the automotive industry

Artificial intelligence is another trendy subject in the world of technology. It has also penetrated deep into the automotive industry and is leaving some serious marks. The field of AI encompasses various technologies such as machine learning (ML), computer vision and deep learning. These three technologies have been widely used in various areas of the automotive industry.

Autonomous driving is the most significant impact of the AI in automotive industry. It has made it possible for the building and development of self-driving vehicles. These are vehicles that are able to drive themselves. Computer vision has enhanced automotive safety as it tends to mimic some human aspects in driving.

Artificial intelligence is also used in other areas of automotive such as analytics, marketing, and insurance. For example, insurers can use AI models to predict the rates that one should pay based on the collected data.

Internet of Things in the automotive industry

IoT is incorporated into the automotive industry thanks to IC chips. The Internet of Things mainly focuses on connectivity through the Internet for data exchange. Through this technology, a vehicle can send as well as receive data from the network.

What are the applications of IoT in the automotive industry? Think about remote car monitoring. Here, the location and movement of vehicles can be monitored remotely. Fleet management in the area of transport logistics utilizes this feature to allow companies to monitor the movements of their fleet.

IoT also connects vehicles to manufacturers and dealerships. Such cars can automatically receive software updates from the manufacturers remotely.

ADAs (Advanced Driver Assistance System)

Modern vehicles are packed with numerous driver aids which are known as advanced driver assistance systems (ADAS). They include lane departure warnings, automatic parking, advanced cruise control, and adaptive light control, among others. Most of these features enhance the driving experience. They also improve automotive safety.

The implementation of ADAS applications has been made possible by IC chips. Keep in mind that all of these applications run on electronics meaning that they contain numerous chips.

Speedy and precise vehicle manufacturing

IC chips have also improved the way vehicles are manufactured.  They have led to the modernization of manufacturing equipment which is faster and more efficient. One aspect is through 3D manufacturing which is used in the production of vehicle parts and accessories. Another way is through automation of the manufacturing process.

Market data about the IC chips in the automotive industry

From the above applications of microchips in the automotive industry, you can easily tell that the market for chips in the industry is quite sizable. According to a reliable market report that was released in 2017, the global automotive integrated circuit market was valued at USD 43 million. It was projected that the values will hit $89 million by 2025. From these predictions, the IC market value will grow at CAGR of 9.3%.

It was in 2020 when the automotive industry suffered a huge blow caused by the global chip shortage. This forced most automakers to alter their production programs. The auto industry suffered some serious shortages. The shortage has lasted for quite a long though it was expected to end by the last quarter of 2023.

The evolution of semiconductor technology makes it necessary for automakers to incorporate chips in vehicles. Each chip is customized to perform a specific role in the vehicle. This means that when several chips are combined under a single automotive unit, you should expect optimum performance, extra features, and functionalities as we have discussed in the article.

Conclusion

At this point, we cannot deny that technology is a key driver in the automotive industry. It determines the direction of the industry both on the manufacturers’ side and as well as the consumers. It has transformed the way that car makers are making vehicles while at the same time revolutionizing how car users interact with their vehicles.

Whether it is automation, artificial intelligence, IoT, or any other technological application, IC chips have made and are still making serious impacts in the automotive industry. Since the industry’s research and development is not stopping soon, we should expect more in the coming years.

Are you working on an automotive project?  As long as the development will run on electric energy, getting the right IC chips should be a key requirement. Ensure that you find a reputable chip supplier in China as it will be a key ingredient in determining the success of your automotive project.

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