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Intel CEO predicts chips will occupy 20% of Premium Vehicle BOM by 2030

Raunak Saha by Raunak Saha
September 8, 2021
in Technology
0
Intel CEO predicts chips will occupy 20% of Premium Vehicle BOM by 2030

IAA Graphic Percent

Recently, at his first in-person keynote, Intel’s new CEO, Pat Gelsinger has said at Munich that semiconductors will account for more than 20% of the total premium vehicle bill of materials (BOM) by 2030. 

Indeed this could be true as more and more vehicles get automated or are made hybrid, with EVs getting more popular these days. This represents a staggering 5X growth rate over 2019’s 4% figure, and also, in 2025, the growth could be around 12%.

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Gelsinger predicted the total addressable market (TAM) for automotive semiconductors would nearly double by the end of the decade to $115 billion, accounting for more than 11% of the entire silicon TAM.

Intel and its subsidiary Mobileye are working to make fully autonomous cars by revealing its production AV equipped with Mobileye Drive™ and Mobileye’s fully self-driving system. 

This trend is being driven by what Gelsinger called “the digitization of everything” and four superpowers – ubiquitous computing, pervasive connectivity, cloud-to-edge infrastructure, and AI – that are permeating the automotive and mobility industries.

Gelsinger described the situation as both a massive challenge and an enormous opportunity – and the perfect time for Intel to step up to the plate. “This new era of sustained demand for semiconductors needs bold, big thinking,” said Gelsinger.

“As CEO of Intel, I have the great privilege to be in a position to marshal the energies of  116,000 employees and a massive chip-design and manufacturing ecosystem, to meet the demand.”  

via Intel

Tags: IntelMobileyePat GelsingerSemiconductors
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