September 2024
Intermediate to advanced
544 pages
13h 34m
English
Content preview from Techno-Nationalism
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Chapter 22Semiconductors and Electric Vehicle Wars
Modern automobiles cannot run without semiconductors. Even vehicles with an internal combustion engine (ICE) require microchips for everything from fuel injection and transmission systems to braking, traction control and power locks.
In fact, a modern ICE-powered vehicle requires about 1,400 semiconductors, while a hybrid electric vehicle (HEV) may use up to 3,500.1
In 2020–2021, a microchip shortage caused by a series of swings in supply and demand (resulting primarily from markets distortions caused by the COVID-19 pandemic) exposed serious vulnerabilities in the semiconductor supply chain and cost the automotive sector about US$200 billion.2 The chip shortage also revealed other important truths.
China’s central planners have been pushing local EV makers such as BYD and Geely to source their chips from local chip manufacturers to bolster domestic production of legacy chips and reduce reliance of foreign chips technology.3
The story is the same in America. New government funding under the CHIPS Act has been flowing to new fabrication ventures involving, for example, GlobalFoundries’ new fab in upper New State, which will increase capacity to make chips for the automotive sector.4
THE BLURRING OF AUTOMOTIVE AND TECHNOLOGY COMPANIES
Semiconductor companies and car companies are forming increasingly close strategic partnerships. For good reason: the automotive chip market in 2027 is projected to be worth around US$85 billion, ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.