By 2030, Intel CEO predicts chips would account for 20% of car costs.
Chips and semiconductors, according to Intel CEO Pat Gelsinger, will soon be as necessary as an automobile's engine in terms of functionality (or main propulsion).
According to Gelsinger, this change will take place by 2030, as he stated during his presentation at the IAA Mobility 2021 show in Munich. Gelsinger's claim is supported by internal study conducted by Roland Berger-McKinsey.
In 2019, automobile BOMs contain only 4% of chips, with the majority of them being electronic control units (ECUs) and an optional infotainment system. By 2030, artificial intelligence (AI) will be capable of driving a vehicle anyplace. Vehicles that are entirely autonomous will be used for personal transportation in the future (AVs). He estimates that by the end of the decade, the automotive semiconductor market will be worth $115 billion.
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What @PrMinisterGR said.
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Quite sure thats new cars though, the existing diesel/petrols will still be there for 10-20 years after that, only lack of infrastructure would speed that up.
This news is only to keep Intels shareholders happy with the potential.
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That's a daring prediction. But not so far fetched.
But that means that a mechanism would be rendered useless without software/chips to operate it. And mechanics will have to adapt. Or their branch will be also reduced to simply checking software updates?
In a profitability standpoint, it is very farfetched. Back around 2014 when economy cars started including touchscreen head units, they'd use the cheapest crappiest processors so they could, until people started complaining that using their phone was faster and easier (which has its own implications of issues). Tesla has invested in making their own processors, likely to reduce cost.
The way I see it, Gelsinger is envisioning a monopoly of a future where he somehow manages to outpace Nvidia. I'm sure it's all stuff to appease investors, as they like the idea of something raking in so much cash.
What you say is true for petrol and diesel cars, but by 2030, most cars will be electric, in which computer chips plays a MUCH bigger role.
We already have cars with all the technology necessary to drive by themselves; they just need more refined software. For head units, the processors are for the most part are powerful enough to give a smooth experience. Of course there is room for improvement and advancement, but I'd say we're 80% of the way there when it comes to computerizing vehicles. It is just preposterous for the computer hardware to make up more than 20% of a vehicle's cost. Even 10% sounds absurdly high.
Remember too that EVs are the primary future of vehicles. We need efficient hardware, not necessarily faster. Again: we today already have the technology we need, we just need to refine it.
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In Intel's perfect world where they can continue driving up the cost of sand so that's it's absurd.
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There's a ban of non electric cars in place for 2030.