Cars should use fewer but more capable chips, says Nvidia CEO | Automotive Industry News

Jensen Huang: chips crisis will get two years to solve

The world wide semiconductor shortage will be resolved within just two years but a fresh tactic is necessary for chips in automotive devices and supply chains, according to Nvidia CEO Jensen Huang.

Soaring need and shrinking supply in semiconductors due to the fact of Covid-19, significant climate and factory fires have compelled automakers including Ford, Standard Motors and Hyundai to halt or interrupt production of automobiles and vehicles.

Speaking to reporters at Nvidia’s GTC conference, Huang claimed the automotive sector’s “tremendous intricate” supply chain intended that recovering from Covid-19 closures was “much more intricate than anybody imagined”.

He claimed: “Covid exposed a weakness in the supply chain of the automotive industry, which has much too many components that go into automobiles.”

The trouble, Huang claimed, could be dealt with by acquiring “a handful of centralised components”. A regular modern car can have more than one hundred semiconductors powering features these kinds of as gasoline overall economy or related characteristics.

GlobalData Automotive analysts, in a briefing issued in January claimed that automotive production is “as reliant on laptop or computer chips as the customer electronics industry”.

“Rather of countless numbers of components it actually would like to be a handful of centralised components due to the fact you could preserve your eyes on 4 matters a good deal improved than you can preserve your eye on ten,000 destinations,” Huang claimed.

This sort of a change in automobile design philosophy would advantage Nvidia, which can make innovative forms of chips that could get on a number of features in a automobile.

Huang included that world wide chip need, notably in the knowledge centre, was “driving the pendulum to pretty massive chips that are pretty innovative as opposed to a good deal of smaller chips that are much less innovative”.

This has made an imbalance in chip consumption, Huang claimed.

“The industry now recognises this and the world’s biggest organizations recognise this, and they’ll establish out the necessary capability,” claimed Huang. “I doubt that it will be a genuine issue in two years due to the fact clever people now have an understanding of what the problems are and they’ll address it.”

Nvidia by itself is a supplier to the automotive industry, with its GPUs and devices-on-chips (SoCs) utilized to energy autonomous automobile tech. This 7 days the Santa Clara headquartered business announced Atlan, a procedure-on-chip for driverless cars that’s thanks for launch in 2025.

This report initial appeared on GlobalData technology site, Verdict.