Categories: Semiconductors
Published 4 Dec 2023

The automotive industry is rapidly changing due to technological advancements, especially in safety, comfort, and connectivity. Semiconductors are at the core of this technological revolution and can potentially transform the entire industry. To provide insights into the intersection of technology and mobility in the automotive sector, Thomas Eppelsheimer, an expert in strategic semiconductor management at AUDI AG, shares his expertise.

During the interview, Eppelsheimer highlights the challenges and opportunities in the industry. He emphasizes the importance of collaboration to secure the supply chain and stresses the need for innovation to meet consumers' changing demands. Read on to discover the key takeaways from the riveting conversation.

Securing the Supply Chain

CaptionThomas Eppelsheimer, Strategic Semiconductor Management Expert at AUDI AG.Ensuring the security of the supply chain is of utmost importance to Eppelsheimer, who emphasizes its strategic significance. The focus is not only on present concerns but also on a forward-thinking approach. "Collaboration is key, not only with suppliers but also across departments. Working closely with technical and quality departments and Tier 1 and 2 suppliers is essential for a complete design and production supply chain," he says.

Eppelsheimer continues: "To build a robust supply chain, understanding the investment plans and aligning the requirements accordingly is necessary." "The direct contact to the Tier 2 suppliers is crucial. By doing so, you can identify requirements and create a framework for a strong partnership."

Explicitly addressing the disruptions caused by the global pandemic, Eppelsheimer stresses, "The industry is now better prepared for future disruptions due to the knowledge, transparency, and partnerships acquired during that period, enabling better management of risks."

Semiconductor suppliers are now constructing a second fabrication site to reduce geopolitical risks.

“Moreover, semiconductor suppliers are now constructing a second fabrication site to reduce geopolitical risks. Having two sites gives the flexibility to source chips from either of them. Additionally, producing the same product in two different countries is becoming more prevalent.”

Smart Semiconductor Solutions

Displaying a sharp awareness of market dynamics and adapting to establish a synergy that ensures both relevance and ingenuity, Eppelsheimer emphasizes: "All modern innovations, for example, in driver assistance solutions, rely on semiconductors and software. It's crucial to develop smart solutions that align with the vehicle's needs and customers' preferences."

Future Areas of Semiconductor Development

Eppelsheimer discusses the importance of embracing new materials like silicon carbide (SiC) in semiconductor development. He believes exploring using SiC in electronic vehicles is vital due to its numerous advantages over silicon. Moreover, he emphasizes the importance of identifying new materials.

“The combination of AI (artificial intelligence), supercomputers, and material databases could boost the discovery of new materials in the coming years,” he says.

"At the moment the SiC sector is highly discussed. SiC chips are preferred over traditional silicon due to their superior heat resilience and higher efficiency. They are also highly efficient in power transfer and management, making them vital in the world's transition to green energy and power storage."

Eppelsheimer stresses the significance of exploring new materials beyond immediate automotive applications. According to him, SiC is interesting for auto manufacturers, batteries, and other energy storage solutions. As a result, monitoring and staying updated on emerging materials in the industry is crucial.

Long-Term Vision for Semiconductors in the Automotive Industry

"Semiconductors have been a driving force of prosperity for the global economy. As one of the fastest-growing sectors in technology, semiconductors will continue to play a crucial role in further modernization of the mobility sector.”

"The global semiconductor industry is set to experience robust growth well into the coming decades, thanks to emerging technologies such as autonomous driving, AI, 5G, and much more. This growth will be fueled by consistent spending on research and development and competition among key players."

What's in store for the future?

Looking ahead, Eppelsheimer highlights significant trends such as the emergence of self-driving vehicles, increased electrification, and continued Software integration. These are driving factors for more chips/Semiconductors in the car. Reflecting on his commitment to staying ahead of the curve, Eppelsheimer emphasizes the importance of keeping up to date with the semiconductor industry to meet the growing needs of consumers.

Eppelsheimer's insights provide a comprehensive overview of the challenges, opportunities, and collaborative efforts shaping the semiconductor industry's future within the automotive landscape. As these industries continue to evolve, it is essential to foster strategic partnerships and cutting-edge solutions to drive progress and meet the demands of an ever-changing market.