Electronics Is Driving Development

Today, without electronic components, vehicles would remain at a standstill. This situation is being driven, above all, by the electrification of the drivetrain and the increasing introduction of automated driving functions. Further contributions to this result from the raised expectations on the part of customers regarding the availability of entertainment electronics in the vehicle and the connection of more and more functionality provided by end-devices. So it is not surprising, for example, that Bosch intends to further strengthen its semiconductor business and invest around 3 billion euros by 2026. And against this background, it does not come as a shock that VW's boss Diess was heavily criticized before his departure, in part because of his underestimation of the seriousness of the semiconductor crisis and the sluggish development of in-house software and IT systems. It is almost a logical consequence that Volkwagen's software subsidiary, Cariad, has entered into a cooperation with STMicroelectronics with the intention of jointly developing the microchips required for networking in new vehicles. More investments are more than urgent as, according to analysts, current supply shortages due to a lack of electronic components will continue up to 2024, and not least because e-vehicles require significantly more microchips than combustion- powered vehicles. The "European Chips Act" that the EU initiated in February 2022 with 40 billion euros of public grant money should help. …