The Threshold for Automotive Electronic Components

Page Introduction

Classification	Electronic componet
Keyword	Automotive Electronic Components,electronic components
Article core	What’s the Threshold for Automotive Electronic Components

Catalogs

Catalogs	I. Trends in Automotive Electronics
	II. The Market Analysis of Automotive Electronic Components
	III.Standard of Car Rules--automotive standards electronic components
	IV. Long-term supply for automobile electronic components
	· 1. Double origin and supply safety
	· 2. Reliability and harsh environment · 3. Recall and functional safety
	· 4. New Car Industry Players and the Chinese Market
	V. Top Automotive Electronic Components Manufacturer in the world
	VI. Conclusion

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This papers is mainly about automotive electronic components. The automotive market is likely to become a new engine to drive semiconductor growth. In annual shipments, cars are far less than mobile phones, but the total value of semiconductor devices used for each car is much higher. According to McKinsey data, 350 dollars of semiconductor devices are used for each medium car in developed countries. The luxury car will use a semiconductor price of $1000, while the iPhone 7 is the highest distribution material cost (including semiconductor components, PCB boards and connectors, etc.) Only 292 dollars.Let's see a video about Advanced Automotive Electronics Course first:

This video is about Advanced Automotive Electronics Course

Four experts from the world's famous automotive electronic component manufacturers (STMelectronic,TE Connectivity,Renesas,Takata Corp. )  was invited to talk about the particularity of the electronic components of the car and to reveal where the threshold of the device is.

Semiconductor market analysis--What’s the Threshold for Automotive Electronic Components

More importantly, with the rapid development of driverless, Internet of vehicles and electric drive technology, more electronic components will be introduced into automobiles.

market forecast for automotive semiconductor--What’s the Threshold for Automotive Electronic Components

I. Trends in Automotive Electronics

In recent years, modern vehicles are showing an increasing number of electronic systems and functions. The driving forces behind this development are the ever growing needs for more safety, less emissions and energy consumption, more driver information and driver assistance, and last but not least more driving fun and comfort.

The history of modern automotive electronics started in the 50’s to 60’s of the last century with the introduction of semiconductor transistors in car radios and power diodes in alternators. Since the 80’s, the integration of electronic systems like engine management or brake control systems has come into focus. The era of today is characterized by the vehicle-wide networking of all electronic systems, thus allowing for new additional functions. As a next wave, we expect an increasing networking between the vehicle and its environment. All those trends are enabled by electronics and communication technologies supporting increasing digitalization, integration and networking of electronic devices.More trend about automotive electronics,you can see the pdf: Trends in Automotive Electronics PDF

II. The Market Analysis of Automotive Electronic Components

IC Insights predicts that in the next few years, vehicle chips will grow fastest in all semiconductor subdivision applications. The most optimistic Pacific Crest stock predicts that by 2025, the scale of the global automotive semiconductor market is expected to reach 110 billion US dollars.

Autonomous vehicles--What’s the Threshold for Automotive Electronic Components

The profit rate of automotive electronic components is high and the market is growing fast, so the traditional automotive electronics manufacturers continue to increase their investment, and new players have to make every effort to enter the market. But unlike consumer electronics, automobile parts have high requirements for safety, reliability, and supply assurance, especially in the front, only through strict assessment enterprises can enter the automotive front loading supply chain.

Although China is the largest automobile market in the world, it is almost blank in the field of automotive electronic components. Some people say that compared with the whole vehicle, the gap between Chinese companies is larger in the field of electronic components.

More detail you can see this page: The automotive electronics market: A view from a material supplier | Solid State Technology

III.Standard of Car Rules--automotive standards electronic components

Question: How long is the certification time for a device manufacturer who has never been involved in automotive electronics before entering the pre loading market?

Alberto Mervic, director of electronic product quality and reliability of STMelectronic automotive and discrete device products division, said that new auto electronics players are going to enter the pre installed market, taking at least two years or so to pass the relevant certification, the enterprise wants to pass the ISO/TS16949 standard, the manufacturing plant (Fab) and the related institutions also need to pass the VDA process audit.

The International Standard Organization (ISO) is aiming at the qualification of automotive electronics production, that is, 16949. So why is there TS16949 outside ISO16949? This is due to the establishment of a standard process for the international standard organization. The new specification is called the technical standard standard (Techinical Specification, such as TS16949) for a new specification for each standard and 2/3 members to vote for each standard. The specification will be included in the ISO standard if the new specification gets 3/4 members to vote. So TS16949 got the 2/3 vote of the international standard organization, but did not get the 3/4 vote support standard.

"ISO/TS16949 generally audits the factory by Intertek or TUV, and VDA 6.3 is generally audited by the first level supplier for its suppliers (i.e. two level suppliers such as electronic components). The audit cycle and requirements will be associated with the product application of the first level suppliers." Cai Yingda, a global product manager at Littelfuse, points out that, compared to ISO16949, the VDA standard is a regional standard. In order to enter the European market, the electronic component manufacturers generally have to obtain the VDA 6.3 authentication.

"To produce a car class product, not only does the manufacturing plant have to pass the ISO16949 certification, but the semiconductor discrete device itself requires AECQ101 authentication, and passive passive components require AECQ200 authentication, these are very strict certification specifications." Its product development engineer Dai Taichu added.

In addition to the ISO/TS 16949 and VDA6.3 standards for the company, the AEC-Q standard for specific components, the safety of the automotive electronic module and the ISO26262 standard, the non traditional manufacturers are entering this field, and the first step is to obtain the qualification.

IV. Long-term supply for automobile electronic components

"The car market is very special, the vehicle enterprises are strict with suppliers: high quality standards, long life cycle, reliable supply chain, and a full life cycle to support the host plant handling crisis." Alberto Mervic of STMelectronic believes that auto parts manufacturers should always place quality and service in the first place, so as to achieve the expectations of suppliers.

3 years of working life can meet most consumer demand. The life expectancy of industrial semiconductor is 5 to 10 years. To automotive grade products, it usually requires 15 years of working life, that is, vehicle lifecycle can work normally, and the supply cycle can be as long as 30 years.

requirements on automotive semiconductor--What’s the Threshold for Automotive Electronic Components

"Car rules and components manufacturers will effectively plan the life cycle of the product so that the listed products are suitable for more applications so as to increase customer applications and ensure adequate customer applications in the effective life cycle." this is the long-term supply plan given by Cai Yingda. "For the products at the end of the stage, the product will still be strictly and effectively guaranteed." Production until the end of the customer's project life cycle. "

Alberto Mervic also points out that parts and components enterprises should guarantee the long life cycle of auto regulation components from the strategic level of the company, that is, the manufacturing plant (Fab) management and the company market strategy must meet the requirements of the long-term production. But when the product enters the end of life, the production will decrease naturally and the production of low output components will affect the normal operation of the production line, so how should the manufacturer handle the cost too much? "One solution is phased production, according to customer needs, we plan the quantity of production, and output several supply cycles at a time." In this way, manufacturers can avoid inventory problems in long term production by inventory management.

• 1. Double origin and supply safety

After the 2011 Fukushima earthquake, the concept of automotive supply chain security has changed a lot. Before the Fukushima earthquake, TOYOTA motor emphasized the minimum inventory to achieve the lowest cost and the highest production efficiency. TOYOTA automobile inventory management method has a large impact, quite a number of supply chain manufacturers and competitors have followed suit.

But the Fukushima earthquake exposed the weakness of this inventory management method, because the inventory is very low, once the supply is not enough, the production line will be shut down. So after the earthquake, the global automotive supply chain began to change. Increasing inventory, diversified production and dual producing areas are more popular.

Double origin production can cope with unexpected disasters, but the production management and product consistency will test the management level of suppliers when they are produced at two locations.

"Business Continuity Plan( BCP) from a single producer, and a dual producer of two producing areas, is required to conduct quality control and traceability management in two areas of origin." Cai Yingda said that when using dual origin supply, product information traceability is very important.

Alberto Mervic believes that most manufacturers are still looking at the same product (product consistency, material management costs), "Alberto Mervic said," most manufacturers are still watching, "this topic caused widespread concern after the Fukushima earthquake, but It's still just a concern. "

• 2. Reliability and harsh environment

Nearly all weather conditions can be used by cars, which require high environmental adaptability for vehicle components and components. "Automotive grade products must meet the requirements of high temperature alternation, shock and wind attack, waterproof and sunscreen and high-speed mobile". Tyco Electronics (TE Connectivity), head of sales and marketing of China Automotive Division, told non network reporters.

"With the innovation of new energy vehicles and autopilot, the safety of automotive components in high frequency and high pressure environment has become a new technical difficulty," the person in charge raised the example of new energy vehicles. "The safety and reliability of the system architecture of new energy vehicles is a challenge, which requires the enterprise to make breakthroughs in the key technologies, such as batteries, motors, electric control, etc., in connectors and sensing. Devices, contactors, relays and other core components and components also need to make progress.

How can suppliers ensure the components to cope with such bad conditions? "A wide and restrictive standard of detection (Robust Qualification), which is far higher than the international standards such as AEC-Q100, is carried out within the interior of Italy. Through robustness testing, we can further analyze the electrical characteristics and physical changes of components under the action of Reliability stress. Alberto Mervic introduces the practice of STMelectronic.

High reliability/Zero defects in the cars--What’s the Threshold for Automotive Electronic Components

The reliability of components for high-speed vehicles is also very strict. The zero km failure rate is one of the most important indexes of the automobile manufacturers. If the vehicle fails, the car manufacturer will immediately feed back the situation to the component supplier, and hope to get the timely response of the component supplier.

"To achieve stability and reliability of the reliability of the car level, in the initial stage of product research and development through effective DFMEA and PFMEA design, and in the production of the effective application of various quality management tools, and do a good job in the management of suppliers." Cai Yingda believes that reliability is the key indicator of car regulation, and that the increase of quality management input to improve reliability is also one of the reasons for high cost of car regulation products. "The average number of DPPM in the general automobile industry is a single digit, which requires very effective quality management tools and methods at all levels. These are extremely invisible but unomitted. Entry and cost. "

Note: DFMEA is the abbreviation of Design Failure Mode and Effects Analysis, that is, design failure mode and consequence analysis, PFMEA is Process Failure Mode and, that is, process failure mode and consequence analysis.

• 3. Recall and functional safety

In recent years, vehicle recall events are constantly appearing due to brake failure, engine or gearbox control software failure.

"The most recent product defect event in recent years is nothing more than the field air bag incident. Its exposure to quality and safety risks leads to massive vehicle recalls." Cai Yingda gave a case of heavy losses caused by product defects.

The US freeway traffic administration said in October 22, 2014 that metal fragments could be produced when the Japan Takata Corp. airbag burst causing a great security threat to passengers. According to the incomplete statistics, the Takata Corp. air bag has caused at least 16 deaths and more than 180 injuries worldwide. By May 2017, the total number of vehicles recalled by the global air bag assembly had reached 120 million. At the end of June 2017, kontian had applied to the Tokyo local court for bankruptcy protection.

The failure of the safety function of vehicle safety related control system is the main cause of the recall level failure. The failure of the vehicle electronic and electrical system is the most prominent, and the ISO26262 (road vehicle - Functional Safety) standard, the national standardization organization, combined with the functional safety standards formulated jointly by the more than 30 major auto manufacturers in the world.

Alberto Mervic points out that functional safety is becoming an essential feature of most advanced chips. "Italian semiconductor has been developing this area many years ago, and now it has released a number of products that meet ASIL standards."

"Renesas has more than ten years experience in vehicle function and safety. According to ISO26262's standard, we develop MCU/SOC products corresponding to ASILB, C and D levels. Lin Zhien gives an example: the chassis system or power system, which was previously controlled by a CPU, may require another CPU to be designed as a redundant system. When the main CPU fails, there will be another backup system to replace it.

• 4. New Car Industry Players and the Chinese Market

Although there are many above threshold for automotive components, there are still many new players who want to rush into this market. Intel, NVIDIA and other non-traditional automotive semiconductor manufacturers have launched a high-profile way. How do they see these new players?

Alberto Mervic believes that product innovation, rapid development and short life cycle are new manufacturers' characteristics from consumer and communication applications. "Flexibility and speed are the advantages of non-traditional auto parts enterprises, but they are not the advantages of traditional automotive chip companies."

Renesas Lin Zhien said that, in addition to the influx of new players, there are also old players disappearing because of the merger and acquisition, and the car component market will not be reduced by the influx of new players. "Semiconductor manufacturers ensure their profit margins by developing new technologies and products, improving production processes and technologies."

Littelfuse Dai Taichu hold similar views. "The rapid development of the new automotive electronics technology promotes the development of the car level component market, and the new players are often the new technology and new application industries. These fields are also due to the high threshold of technology and the profit rate is not low. In these new technologies, the starting line of the new players is not too late. On the contrary, they may have more patents and technical advantages. Keep a firm foothold. "

The other side of diversification is more opportunities. It is exciting for more manufacturers to enter this field, as only markets with real growth potential and unlimited opportunities attract more participants, and more diversified external competition can promote technological upgrading and development. Teico electronics also believes that the influx of new players is just a manifestation of the dynamic performance of the automotive components market.

How to change the current dilemma of the frail China's automotive electronic components industry? Marc Guedj, the business development and strategic marketing manager of Italy semiconductor automotive and discrete device products division, offers technical cooperation or M & A, which reduces both the technical route risk and the ready-made customer relationship. "M & A or cooperation can enable Chinese semiconductor companies to adapt themselves to the working mode of host plant and first class suppliers quickly."

Dai Taichu also gave two suggestions, he thought that the Chinese component manufacturers should first withstand the loneliness, "unlike the mobile phone and other consumer markets, car design and development process is very long, product design to measure production will go through a long time, and must not be urgent." Secondly, the Chinese component manufacturers should also pay attention to the quality of the car industry, the opportunity to make mistakes is not much, "must practice good internal work, step up to make the world - class components, can be stable in the market."

V. Top Automotive Electronic Components Manufacturer in the world

Renesas	Renesas Electronics Corporation delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live—securely and safely. A global leader in microcontrollers, analog, power and SoC products, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics (HE), Office Automation (OA) and Information Communication Technology (ICT) applications to help shape a limitless future.
TE Connectivity	TE Connectivity is a technology company that designs and manufactures connectivity and sensor products for harsh environments in a variety of industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics, energy and subsea communications.
STMelectronic	ST is a global semiconductor company with net revenues of US$ 8.35 billion in 2017. Offering one of the industry’s broadest product portfolios, ST serves customers across the spectrum of electronics applications with innovative semiconductor solutions for Smart Driving and the Internet of Things. By getting more from technology to get more from life, ST stands for life.augmented.
Takata Corp.	Takata Corporation develops, manufactures, and sells automotive safety systems and products for automakers worldwide. It offers seat belts, including webbings, retractors, buckles, and tongue plates; and airbag systems comprising driver, passenger, side, curtain, knee, and motor cycle airbags.

VI. Conclusion

There are many related standards, high reliability requirements, long development and supply cycle and large joint liability. In addition, the industrial chain is mature and stable, and the investment capital is also a relatively closed cause of the car level component market.

But this is not a completely closed market. The "tangible" hand is not the main reason for the new players to enter. The development of the auto industry is a real threshold, and the successful experience in the consumer market or industrial market is likely to be of little help to the car level market.

New technology development has brought new competition space, new players have been introduced, and the prospect of robust and rapid growth of car level component market has also made many "outsiders" coveted. Among these new vendors, many ambitious guys try to subvert the market, but new players may have to be careful that breaking the threshold is not the best way to get into the industry.

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