Cost of semiconductor chips in vehicles to double by 2030 due to advanced technologies, remodeling the automotive industry. | Photo credit: Reuters
The cost of the semiconductor chips used in the vehicles is expected to be doubled from the current average of $ 600 to $ 1,200 per vehicle by 2030, according to a new Niti Aayog report.
The increase is attributed to the growing use of advanced technologies in motorobiles, including electric power trains and smart conduction characteristics. The report stressed that the global automotive sector is experiencing a significant transformation, changing traditional fuel -based vehicles to electric vehicles (EV). These EVs are increasingly equipped with next -generation characteristics, such as Advanced Driver Assistance Systems (ADAS), Internet Connectivity (IoT) and Autonomous Driving Capabilities (AD).
These high -end characteristics require more sophisticated semiconductor chips, resulting in an increase in demand and cost. Niti Aayog said: “With the integration of these avant -garde technologies, it is projected that the cost of semiconductor chips per vehicle doubles, increasing from $ 600 to $ 1,200 by 2030”. As cars become more connected and intelligent, the role of electronics and semiconductors in the automotive industry is growing rapidly.
The report said that the integration of advanced technologies is not only changing vehicles itself, but is also remodeling the global manufacturing panorama. The automotive industry is becoming increasingly interdependent with sectors such as electronics, semiconductors and artificial intelligence (AI). In addition to this, the deep links of the automotive industry with another key industrial sector, such as steel, textiles, leather, rubber, plastics, glass, and do one of the largest consumers or industrial products varied worldwide.
According to the report, the global automotive component market was valued at approximately $ 2 billion in 2022, showing its crucial role in the broader automotive ecosystem. Of this, almost $ 700 billion, or around 30 percent, comes from negotiated automotive components. Around the last five years, the automotive sector has demonstrated constant growth at a rate or 4 to 6 percent, driven by the increase in consumer demand and the growing interest in vehicle ownership.
The growing focus on high -tech, intelligent and sustainable vehicles is expected to continue promoting this growth trajectory. With the increase in EVs and intelligent mobility solutions, the demand for semiconductor chips and advanced components is established, which marks a new era of innovation and collaboration between automotive and technology sectors.
Posted on April 15, 2025