Increased demand and a migration to advanced processes driving costs up
According to new research from Intel Corp, semiconductors are forecasted to account for more than 20% of the total premium vehicle bill of materials (BOM) by 2030. A recent article at Electronics 360 provided details on the increase that represents a five times growth rate over 2019’s 4% figure.
In addition to the automotive industry, growth in markets such as cloud-to-edge infrastructure, industrial, artificial intelligence (AI), and the internet of things is predicted to contribute to a 5% increase in the growth of semiconductors over the next decade.
This increased demand has stimulated efforts to build new semiconductor fabs in the near term and redoubled efforts to increase domestic U.S. semiconductor manufacturing and reduce reliance on Asian suppliers.
While most automotive chips are currently manufactured using legacy process technologies, changes are underway to migrate to more advanced process technologies.