Taken together, these shifts mark a significant departure for traditional automakers, which find themselves playing catch-up to companies like Tesla, Waymo and NIO. Determined not to be left behind, they have begun zeroing in on ways to close existing gaps. Among them:
Development of new fuel sources for electrification, including hydrogen fuel cells and plug-in hydrogen fuel cell hybrids.
Utilization of new sensors and other low-power technology.
Development of solid-state batteries.
Shifting focus to more in-vehicle processing.
Deployment of fundamental changes to business models.
All of these developments require a big increase in semiconductor content, and that trend is expected to continue as vehicles are increasingly electrified to the point where they become, in effect, supercomputers on wheels. In a just-released report, KPMG estimated these changes could boost the automotive semiconductor market from roughly $40 billion today to between $150 billion and $200 billion over the next two decades, and those numbers do not include V2X infrastructure or increases in tooling and manufacturing equipment.