Cars already share several key components with consumer electronic devices, driving demand across the supply chain. We dive deeper into this overlap and the new technologies working to prevent supply chain bottlenecks.
As cars become more connected, auto and consumer electronics’ supply chains are converging.
Electronic component suppliers are already seeing an overlap— and are feeling the pressure as demand for components increases.
Fully autonomous cars require more advanced computing technology to self-navigate, pressuring chipmakers to ramp up production and develop chips with unprecedented levels of processing power.
Automakers are also looking to upgrade the driver experience by digitizing the dashboard and revamping the infotainment system, placing more demand on chip processing power.
At the same time, prices of lithium-ion batteries have soared, due to limited materials and increased demand from electric vehicles and consumer electronics.
Below, we explore carmakers’ rising demand for components that were once tied primarily to the consumer electronics industry — and the new technologies and production approaches companies are pursuing to navigate an increasingly strained supply chain.
This is the second post in our Expert Intelligence series on how spiking demand for components and advanced materials are constraining electronics and hardware supply chains and driving tech innovation. Read the first post about the effects of soaring raw materials demand here.
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Integrated circuits (ICs) are a central component in electronic devices. Made of silicon, IC chips host a large number of transistors and capacitors that work together to create an electric circuit. ICs provide an array of functions for electronic devices, ranging from microprocessors to networking to memory storage.
Over the past year, demand for ICs has surged, in part due to the rise of the autonomous car and a growing number of IoT devices. Autonomous cars require exponentially more chips than typical consumer devices, because they use data from hundreds of sensors to process their surroundings and navigate the road.