Tuesday, September 7th 2021
Intel CEO Predicts Chips Will Cost 20% of Future Cars' Bill of Materials by 2030
Intel CEO Pat Gelsinger predicts that chips and semiconductors will make up as much of the car's bill-of-materials (BOM) as the engine (or main propulsion) itself. This change will happen as early as in 2030, said Gelsinger, speaking at a keynote address, at the IAA Mobility 2021 show in Munich. Gelsinger's prediction is backed by internal research conducted by Roland Berger, and McKinsey.
As of 2019, chips barely made 4% of a vehicle's BOM, confining mainly to the ECU and an optional infotainment system. By 2030, electronics will take over a more complex set of roles, including full automation, and AI that can drive anywhere. A fully automated vehicle, or AV, will be next big thing in personal transport. Gelsinger predicts a $115 billion TAM (total addressable market) size for automobile semiconductors by the end of the decade.
As of 2019, chips barely made 4% of a vehicle's BOM, confining mainly to the ECU and an optional infotainment system. By 2030, electronics will take over a more complex set of roles, including full automation, and AI that can drive anywhere. A fully automated vehicle, or AV, will be next big thing in personal transport. Gelsinger predicts a $115 billion TAM (total addressable market) size for automobile semiconductors by the end of the decade.
73 Comments on Intel CEO Predicts Chips Will Cost 20% of Future Cars' Bill of Materials by 2030
and lostswede... how do you explain every Kia Rio selling out of stock as soon as it comes in stock, yet SUV's and trucks are sitting on car lots as far as the eye can see... and this $4700 car in the link below is outselling Tesla in China. 200k cars a month being sold. people want budget cars, the free markets are just out touch.
www.techpowerup.com/forums/threads/cost-effective-transportation-how-to-live-a-better-life-with-more-money-in-your-pocket-8-1-kwh-per-100-km-ev-cars-lets-discuss.286398/#post-4600313
And what sells out in China is relevant... why? Have you been to China? First thing I noticed when i stepped foot there the first time many years ago was that the overwhelming majority of vehicles on the street were electric scooters, with a range of nope and the torque of a toddler. Point is, its a place where vehicles are expensive and income is on average a lot lower.
Wonder why a super cheap car would be popular in such a place?
For reference, those scooters cost 400-500 bucks, brand new. You wanna see what sells well, look at those. Because they are outselling any electric car.
Cars nowadays are no longer easy to repair. Generally if it fails you need to replace the circuit board or some electronic component in there. Cars are getting more "efficient", not because there is some scientific breakthrough or something along that line. Basically car companies are swapping out heavy parts in cars and replacing them with PCBs that are significantly lighter. I am no car expert, but I believe this is why we suddenly see cars getting so efficient, as compared to cars that are 10 or more years old.
They are selling us cars we don't need, based on content we didn't ask for.
1. Drive because you like to, or,
2. Drive just for the sake of commuting.
I've known people that love driving around, while some just want a car to fetch them from point A to B everyday. Full automation of car takes the fun out of driving. To me, it is like playing a game, but using a program to cheat. So with the program doing all the work, it just takes the fun out of gaming. In addition, I don't feel comfortable for a car to self drive really. With the car being so connected to the big and dangerous web, I am not surprise someone can hack your car system and drive you into a river.
There’s a reason classic cars are becoming more popular. Make me a modern classic WITHOUT the gizzmos
ICs for cars aren't made on cutting edge nodes and are often made by companies that don't make things end consumers ever see.
en.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants
And we all know that if up to Intel prices would be 400€ for a 4 core and 5000€ for a 16 core and more than that is impossiblei might be wrong but i think this is more for advanced chips for AI and not your average low cost chip to control the power steering
The We could be AI.
But we all know how that is going to go down. If people are texting while driving now, imagine if the car could drive itself. I'm pretty sure there will be people having sex in the back with the car driving itself.