Gartner: 50% of car manufacturers will have to design electronic chips by 2025

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Gartner, a technology market research company, expects that 50% of the 10 largest car manufacturers will design the electronic chips needed for their businesses themselves by 2025. Leadership.

It also enhances their ability to control their product roadmap and supply chains. In this regard, Gaurav Gupta, Vice President of Research at Gartner, said, “Semiconductor supply chains for the automotive industry are not without complexity, in most cases chip manufacturers are traditionally in the third or fourth link. from the supply chain of car manufacturers, causing delays in their adaptation to the variables affected by the demand in the car market.

This limited contact has increased the desire of car manufacturers to take control of the supply of semiconductors into their own hands.” He added: “The current shortage in the supply of electronic chips mainly affects node devices based on semiconductor technology completely, which are cast on the smaller 8-inch chips, which Limits the possibility of expanding its carrying capacity.

This impact extended to the auto industry due to the auto manufacturers’ insistence on not rehabilitating old devices to work on larger chips, and thus will push them to include the design of the electronic chips they need in their operations. We also expect the lessons learned from this situation to motivate car manufacturers to become technology companies.” Not surprisingly, car manufacturers or other sectors are turning to designing the chips they need in their operations, or implementing what is known as a “direct linkage” business model Original Equipment”, due to the continuous changes in the semiconductor market, the adoption of this model among technology companies will increase, and the design of custom chips has become easy thanks to the advanced manufacturing processes made available by semiconductor developers such as Samsung and TSMC, in addition to Semiconductor suppliers provide intellectual property rights to advanced technologies.

Gartner predicts that the average selling price of new cars in the United States and Germany will exceed $50,000 by 2025, which will lead to an increase in the repair and rehabilitation of older vehicles. Vehicle sales in general, and increased demand for parts needed to retrofit old cars, because customers will prefer to keep their old vehicles.” Gartner analysts pointed out that the market for new vehicles will continue to stagnate or decline further in the face of increasing prices, and for their part, car manufacturers will pay new services, and they will work to update parts and technical systems within them in order to extend the life of the current vehicles.



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