As gas prices surge to their highest levels in nine months, owners of internal combustion cars (ICEs) are under pressure to find sustainable and cheaper alternatives. According to the U.S. Department of Energy, driving an electric vehicle (EV) could save as much as 60% on average compared to traditional cars, assuming a fuel price of $2.85 per gallon1. With gas prices now exceeding $5 per gallon in some states, potential savings could be significant. The shift from ICEs to EVs has been gaining momentum, and along with that a surge in demand for semiconductors as semiconductor content rapidly increases in EVs and connected cars.
With favorable purchase taxes, advancements in battery technology, and rapid expansion of charging infrastructure, global EV sales soared to 10 million in 2022 from just one million in 20172. This exponential growth has not only reshaped the auto industry but also given rise to new dominant players. For example, heavy investments into battery technology and electric powertrains have enabled Chinese EV manufacturers to emerge as top players in the production of technologically advanced and cost-effective EVs. Traditional automakers are even partnering with EV makers, where they have found synergies in marrying their scale advantage with EV makers’ know-how in software and autonomous driving. A good example is Volkswagen’s recent partnership with Xpeng to produce two new models that cater to the middle-class segment3.
Semiconductors are essential components in power management, motor control, and battery optimization systems. Semiconductor content in EVs is expected to triple by 2030, largely propelled by advanced driver assistance systems (ADAS) and infotainment systems4. Moreover, to improve the autonomous driving capabilities of these vehicles, reliable and fast connectivity is required to process real-time data from sensors and cameras that are used to make informed decisions and navigate safely on the road. To meet these demands, investments into new fabs are ongoing. Most recently, Taiwan Semiconductor Manufacturing Company (TSMC) established a European Semiconductor Manufacturing Company (ESMC) joint venture with Bosch, Infineon, and NXP to build a fab in Germany to produce chips serving the automotive and industrial sectors.
Infineon
Rapidly Increasing Semiconductor Content
Infineon Technologies is a leading global semiconductor company known for its broad range of products catering to the communications, automotive, and memory markets. Its products are integral to the functionality of various devices, including mobile phones, notebooks, and advanced automotive electronics.
In the automotive sector, Infineon's products play a key role in enabling advanced functionalities in vehicles. Infineon estimates semiconductor content in EVs to increase threefold, most notably for power semiconductors. The company is the global #1 for IGBT-based power semiconductors for high-power transitions, and its wide range of power semiconductor solutions are integral to the efficient functioning of EVs, which includes motor control, battery management, and charging systems. Infineon is also investing in new technologies like silicon carbide (SiC) and gallium nitride (GaN) for power systems. These materials are known for their superior performance in high power and high-temperature environments, making them ideal for applications in electric and hybrid vehicles. The adoption of SiC and GaN is expected to drive efficiency improvements and help in reducing the size and weight of power electronic systems, which is a significant advantage in automotive applications.
5G connectivity in vehicles enables a new level of real-time communication, both vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I). This improves safety, efficiency, and the overall driving experience. It also supports the development and implementation of autonomous driving technologies. Infineon's contributions to 5G connected vehicles span multiple areas, such as intelligent sensors, security modules, and connectivity chips designed for real-time data exchange. In particular, Infineon's AURIX microcontrollers distinguish themselves with high performance and robust safety architecture, making it an ideal platform for domain control and data fusion applications supporting the next levels of autonomous driving. Signifying its commitment to the future of connected and intelligent vehicles, Infineon recently acquired Imagimob, a leader in Tiny Machine Learning, to strengthen its offerings in embedded AI solutions.
Infineon's strength lies in its broad product portfolio, strong R&D capabilities, and strategic investments in new technologies. This has put the company at the forefront of enabling 5G connected vehicles and is helping to drive the future of mobility.
