As the research and development trends in the automotive industry evolve, chip design companies are adapting their strategies accordingly. Non-traditional automotive chip providers, such as NVIDIA, have pivoted their business by expanding the SoC product lines and offering open Software Development Kits (SDKs) to cater to the diverse requirements of carmakers.
According to DIGITIMES Research analyst Evan Chen, non-conventional automotive chip companies have implemented a common approach by expanding their product lines in ADAS/self-driving technology and creating open Software Development Kits (SDKs).
Chip designers eye product-mix and SDKs
Source: DIGITIMES Research, May 2023
Chinese EV brands expedite the adoption of ADAS/self-driving SoCs from non-traditional automotive chip providers compared to traditional carmakers. For instance, the NVIDIA DRIVE Orin SoC was incorporated into NIO, Xiaopeng Motors, Li Auto, and SAIC's Rising Auto in 2022. In contrast, European car manufacturers gradually adopt it starting from 2024. This disparity could be attributed to China's highly competitive EV market. The emerging automakers prioritize smart EVs that leverage high-performance computation and intelligent cockpit for automated driving. Moreover, the new entrants possess a greater expertise in software development, while old guards may need more time to adapt to the fundamental shift for the auto industry.
Some car manufacturers collaborate with multiple non-traditional automotive chip suppliers simultaneously. For example, Volkswagen works with Qualcomm, Horizon Robotics, and Mobileye. Similarly, both BYD and Li Auto team up with NVIDIA and Horizon Robotics to develop more intelligent vehicles.
However, level 4 autonomous driving takes longer than expected. Some carmakers hit bumps on their road to developing in-house automotive software. Consequently, the high-performance computing SoC market may experience limitations in the short term.
Cariad, the software powerhouse of Volkswagen Group, failed to meet development targets but turned to Qualcomm and Horizon Robotics for building ADAS/self-driving systems. This approach helps to mitigate the risks associated with unilateral development and responding to the US-China rising tensions.
Porsche, the luxury sports car brand owned by the Volkswagen Group, partners with Israel's Mobileye for ADAS solution. The technology platform will also be incorporated into other VW Group brands in the future.
About the analyst
Evan Chen holds a master's degree in library and information science from National Taiwan University. His research focuses on autonomous driving technology, ride-hailing service/mobility as a service (MaaS), EVs and batteries.
