By 2025, chip shortages and trends such as electrification and autonomy will drive 50% of the top 10 automotive original equipment manufacturers (OEMs) to design their own chips, according to Gartner, Inc. As a result, it will give them\u00a0control over their product roadmap and supply chains.<\/p>\n\n\n\n
\u201cAutomotive semiconductor supply chains are complex,\u201d\u00a0said\u00a0Gaurav Gupta<\/a>, research vice president at Gartner. \u201cIn most cases,\u00a0chip makers are traditionally Tier 3 or Tier 4 suppliers to automakers, which means it usually takes a while until they adapt to the changes affecting automotive market demand.\u00a0This lack of visibility in the supply chain has increased automotive OEMs desire to have greater control over their semiconductor supply.\u201d<\/p>\n\n\n\n In addition, the on-going\u00a0chip shortage<\/a>\u00a0is primarily with mature semiconductor technology node devices that are fabricated on smaller 8-inch wafers, where capacity expansion is difficult. \u201cThe fact that the automotive industry has been conservative in qualifying older devices on larger wafer sizes has also hurt them and will likely motivate them to take chip design in-house,\u201d said Gupta.<\/p>\n\n\n\n This model of bringing chip design in-house, or popularly known as \u2018OEM-Foundry-Direct\u2019, isn\u2019t unique to the automotive industry and will intensify among tech companies as some changes are happening in the semiconductor market. Semiconductor chip foundries, such as TSMC and Samsung, have provided access to cutting-edge manufacturing processes, and other semiconductor vendors have given access to advanced intellectual property that makes custom chip design relatively easy.<\/p>\n\n\n\n \u201cWe also anticipate that the lessons learned from the microchip shortage will further drive automakers to become tech companies,\u201d said Gupta.<\/p>\n\n\n\n Gartner also predicts that by 2025, the average sale price of new vehicles will exceed $50,000 in the U.S. and Germany, leading to greater repair and upfit of older vehicles. \u201cThis price acceleration will likely shrink the overall number of sales of vehicles and increase the market for parts and upgrades as people seek to keep existing vehicles on the road longer,\u201d said\u00a0Mike Ramsey<\/a>, research vice president at Gartner.<\/p>\n\n\n\n Gartner analysts anticipate that the market for new vehicles will remain flat or even decline in the face of rising prices. Meanwhile, automakers will push new services and even upgrades of equipment and computers to extend the lives of existing vehicles.<\/p>\n\n\n\n Gartner clients can read more in the report\u00a0\u201cPredicts\u00a02022:\u00a0Automotive\u00a0and Smart Mobility.\u201d<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By 2025, chip shortages and trends such as electrification and autonomy will drive 50% of the top 10 automotive original equipment manufacturers (OEMs) to design their own chips, according to Gartner, Inc. As a result, it will give them\u00a0control over their product roadmap and supply chains. \u201cAutomotive semiconductor supply chains are complex,\u201d\u00a0said\u00a0Gaurav Gupta, research vice […]<\/p>\n","protected":false},"author":1,"featured_media":17585,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-17583","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"rttpg_featured_image_url":{"full":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",1270,1270,false],"landscape":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",1270,1270,false],"portraits":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",1270,1270,false],"thumbnail":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey-150x150.jpg",150,150,true],"medium":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey-300x300.jpg",300,300,true],"large":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey-1024x1024.jpg",1024,1024,true],"1536x1536":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",1270,1270,false],"2048x2048":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",1270,1270,false],"post-thumbnail":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",420,420,false],"graptor-sq-xs":["https:\/\/web3unplugged.io\/blog\/wp-content\/uploads\/2021\/12\/Mike-Ramsey.jpg",100,100,false]},"rttpg_author":{"display_name":"admin","author_link":"https:\/\/web3unplugged.io\/blog\/author\/admin\/"},"rttpg_comment":0,"rttpg_category":"Uncategorized<\/a>","rttpg_excerpt":"By 2025, chip shortages and trends such as electrification and autonomy will drive 50% of the top 10 automotive original equipment manufacturers (OEMs) to design their own chips, according to Gartner, Inc. As a result, it will give them\u00a0control over their product roadmap and supply chains. \u201cAutomotive semiconductor supply chains are complex,\u201d\u00a0said\u00a0Gaurav Gupta, research vice…","_links":{"self":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/comments?post=17583"}],"version-history":[{"count":1,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17583\/revisions"}],"predecessor-version":[{"id":17586,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/17583\/revisions\/17586"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media\/17585"}],"wp:attachment":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media?parent=17583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/categories?post=17583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/tags?post=17583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}