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Auto Market Challenges Chipmakersí Stamina

10/1/2013 11:10 AM EDT
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DMcCunney
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Re: Look at the factory
DMcCunney   10/3/2013 2:22:41 AM
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@Junko: that's a good story...i love that!

I thought you might appreciate it.  I was tickled myself.

It was noteworthy is another fashion. Instead of donating money to a charity, Toyota donated skilled services.  The engineers doing the consulting were "on the clock", being paid by Toyota to do it.

daleste
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CEO
Re: From an embedded perspective, I'm thankful
daleste   10/3/2013 11:32:41 PM
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I would say that automotive suppliers are held to a much higher standard than suppliers to the computer and handheld industries.  There were times that we would wrap dollar bills around the chips to stay in the business.  The quality requirements required a lot more investment.  If your phone or computer stops working after the 1 year warranty, you throw it away and buy a new one.  If your car stops working, you get it fixed.  There were times that cars were being parked in a field waiting for our chips.  You can bet that the penalties cost more than the profit at that point.

junko.yoshida
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Re: From an embedded perspective, I'm thankful
junko.yoshida   10/5/2013 11:00:19 AM
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You wrote:

 The quality requirements required a lot more investment. If your phone or computer stops working after the 1 year warranty, you throw it away and buy a new one.  If your car stops working, you get it fixed. 


Exactly. If that's the case, shouldn't the cost of automotive-quality chip development be shared by both chip suppliers and carmakers? Or, am I just dreaming here...

DrQuine
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CEO
Re: From an embedded perspective, I'm thankful
DrQuine   10/6/2013 10:30:02 PM
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Safety, reliability, maintainability, and diagnostics are all needed for car applications. I'd think that a solid architecture that is sustainable would make a lot more sense than "reinventing the wheel" for every product cycle in every model of every car.

junko.yoshida
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Blogger
Re: From an embedded perspective, I'm thankful
junko.yoshida   10/7/2013 6:26:51 AM
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Indeed, "a solid architecture that is sustainable" is the key.

But I think what's happening to the automotive industry and consequently to the chip suppliers who support the auto industry is this:

A slew of new technologies -- be it ADAS or connectivity -- are being introduced. The product cycle of a car would not change and yet the pace of technologies being innovated and introduced to cars is definitely picking up. 

 

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