Business News | Memory Chip Players Compete for Larger Share of Automotive Industry
Get latest articles and stories on Business at LatestLY. The memory chip industry is competing to get a bigger share of the automotive segment as semiconductors gradually become one of the main inputs for car manufacturers.
Seoul [South Korea], July 16 (ANI): The memory chip industry is competing to get a bigger share of the automotive segment as semiconductors gradually become one of the main inputs for car manufacturers.
Modern vehicles come with high-end infotainment systems and ADAS features that consume memory that is now almost as much as laptops or desktops. A Korea Herald report cited industry analysts estimating that infotainment systems in modern high-end cars like Mercedes-Benz's MB.OS platform or the cockpit computing system in BMW's new iX3 electric SUV has anywhere between 4-24 GB of memory. If self-driving features are added, it can easily reach 70 GB.
Micron's CEO Sanjay Mehrotra recently said that cars with Level 2+ autonomy or higher carry more than five times the combined memory than the storage in an average vehicle, according to the report. The chipmaker estimates L2+ to cross 40 per cent of sales by 2030.
The battle for memory has intensified as the AI boom has led to demand surpassing supply and driving prices higher. The consumer tech industry is facing a memory chip crunch, leading some of the players, like Apple hiking prices for its products like MacBook and iPads.
Market researcher TrendForce said that contract prices for single-level cell NAND used in electronic control units and driver-assistance systems are estimated to go up by 120-170 per cent in the second half of this year, according to the Korea Herald report.
Most of the production lines used for making these chips are being used for more profitable products, thereby constraining the supply for other players like consumer tech and the automotive industry.
The booming electric vehicle market in China has emerged as one of the top consumers of memory chips, with Samsung seeing top demand from the market. Samsung overtook Micron to become the top player in the automotive memory segment with a 40 per cent share.
Automotive players are entering into long-term supply agreements with chipmakers to secure supplies as they fear the massive AI buildout will lead to a severe memory chip crisis, triggering more price increases. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)