How reliant are cars on semiconductors?

Semiconductors are materials that have electrical conductivity between that of conductors, such as metals, and insulators, such as glass. This unique property makes them essential for modern electronic devices. Their ability to conduct electricity can be precisely controlled, either by introducing impurities (a process called doping) or by applying external factors such as voltage, light, or heat.

At an atomic level, semiconductors have a crystalline structure in which their electrons are arranged in energy bands. The valence band is fully occupied by electrons, while the conduction band is where electrons can move freely to conduct electricity. These two bands are separated by a small energy gap, known as the bandgap. Unlike conductors, where this gap does not exist, or insulators, where the gap is too wide, semiconductors have a narrow bandgap that allows their electrical properties to be manipulated effectively.

The most common semiconductor material is silicon, though others like germanium, gallium arsenide, and silicon carbide are also widely used. Pure semiconductors are not very conductive on their own, but through doping, specific electrical characteristics can be enhanced. Adding donor atoms (n-type doping) increases the number of free electrons, while adding acceptor atoms (p-type doping) creates “holes” that act as positive charge carriers.

Semiconductors are the foundation of modern electronics, enabling the creation of essential components like diodes, transistors, and integrated circuits. Diodes control the direction of current flow, transistors amplify or switch electronic signals, and integrated circuits combine thousands of transistors into complex systems for computation and data processing.

Their versatility makes semiconductors integral to countless technologies, including computers, smartphones, solar panels, LED lighting, and medical devices. As the demand for faster, smaller, and more energy-efficient devices grows, advances in semiconductor technology continue to drive innovation across industries.

Cars are highly reliant on semiconductors, as modern vehicles incorporate advanced electronics and systems that depend on microchips to function. Semiconductors are embedded in various components of a car, enabling critical operations such as engine management, safety features, infotainment systems, and driver-assistance technologies. Their role has grown significantly as vehicles have become more sophisticated, connected, and automated.

In the engine and powertrain, semiconductors manage functions like fuel injection, ignition timing, and emissions control, optimizing performance and efficiency. Advanced Driver Assistance Systems (ADAS), such as adaptive cruise control, lane-keeping assistance, and collision warning systems, rely heavily on semiconductors to process data from cameras, sensors, and radar. These systems require powerful chips capable of real-time data analysis to ensure safety and reliability.

Infotainment systems, including touchscreens, navigation, and audio controls, also depend on semiconductors to deliver seamless user experiences. Chips manage the connectivity features in modern cars, enabling Bluetooth, Wi-Fi, and smartphone integration. As electric vehicles (EVs) and hybrid vehicles become more popular, semiconductors are essential for managing battery performance, power distribution, and regenerative braking systems.

Autonomous driving technology significantly increases semiconductor reliance. Self-driving systems require advanced chips to process massive amounts of data from lidar, radar, cameras, and other sensors, enabling real-time decision-making and navigation. These systems demand high-performance semiconductors, often based on artificial intelligence and machine learning algorithms.

The automotive industry’s reliance on semiconductors became evident during the global chip shortage sparked by the COVID-19 pandemic. Production delays and supply chain disruptions caused significant challenges for automakers, leading to reduced vehicle output, delays in new model launches, and financial losses. This reliance has highlighted the need for a resilient and diversified semiconductor supply chain to meet the growing demand for automotive chips.

As vehicles continue to evolve with technologies like EVs, connected cars, and autonomous systems, their dependency on semiconductors will only increase. Automakers are now exploring partnerships with chip manufacturers and investing in in-house semiconductor design and production capabilities to ensure long-term stability and innovation in this critical area.

While semiconductors are indispensable in modern vehicles, there are limited alternatives for some of their functions due to the specific role these chips play in processing, memory, and control systems. However, researchers and manufacturers are exploring technologies and strategies to reduce reliance on traditional semiconductor components, especially in the wake of supply chain challenges. These alternatives include innovative materials, redesigned systems, and strategic approaches to technology integration.

One alternative is the exploration of emerging materials like graphene or gallium nitride (GaN) as potential replacements for traditional silicon-based semiconductors. These materials offer superior electrical properties, such as higher energy efficiency, faster processing speeds, and better thermal conductivity. While these technologies are still in developmental stages and not yet widely adopted in automotive applications, they hold promise for reducing dependency on conventional semiconductor materials.

Another approach involves simplifying electronic systems in vehicles. Instead of relying on a large number of individual chips for different functions, automakers can integrate multiple functions into fewer, more powerful chips through system-on-a-chip (SoC) designs. This not only reduces the total number of semiconductors required but also increases efficiency and simplifies supply chain management.

Some manufacturers are also investing in hardware optimization, where they design vehicle systems to rely less on advanced semiconductors by using more mechanical or analog components where possible. For example, simpler models of cars may forgo high-tech infotainment systems or advanced driver assistance features, reducing the overall chip demand. However, this approach is more suitable for cost-sensitive markets or basic vehicle models and may not align with the trend toward highly automated, connected vehicles.

Artificial Intelligence (AI) and edge computing technologies are being explored to optimize existing chips’ usage in vehicles. Instead of requiring chips to process vast amounts of raw data in real time, AI algorithms can prioritize data processing more efficiently, reducing the computational load and potentially lowering the reliance on high-performance chips.

In the long term, automakers are investing in in-house semiconductor production capabilities or forming partnerships with chip manufacturers. By designing and producing their own chips tailored to their vehicles, automakers can reduce reliance on external suppliers and mitigate the risks of future shortages. Companies like Tesla and General Motors are already pursuing this strategy for critical vehicle functions.

While there are alternatives and strategies to reduce dependency, semiconductors remain integral to the future of automotive technology, particularly with the rise of electric and autonomous vehicles. The focus is not on completely replacing semiconductors but rather on innovating and diversifying approaches to ensure a stable and sustainable supply chain for critical automotive applications.