New Landscape for High-End Automotive MCUs

In recent years, the automotive industry has embarked on a profound transformation characterized by the "new four modernizations," a trend that is fundamentally reshaping vehicles from mere mechanical transport tools into advanced intelligent terminalsThis evolution is not just a shift in design; it marks a significant pivot in how cars function and integrate into our livesCentral to this transformation is software, which is acquiring full-stack control authority and enabling a myriad of applications, thereby becoming a pivotal factor in defining the potential of automotive products.

Today, consumers perceive an array of smart functionalities and the degree of electrification as critical when purchasing a vehicleThe industry consensus recognizes that electrification and intelligence have become the focal points of competition within the automotive sectorA crucial component in this transition from electric to smart vehicles is the Microcontroller Unit (MCU), which has seen its applications diversifying and is entering a period of rapid development driven by both demand and price increases.

Market data predicts that by 2023, the global automotive-grade MCU market will reach approximately $8.646 billion, demonstrating a year-on-year growth of 4.34%. As the penetration of new energy and autonomous vehicles continues to rise in the future, automotive-grade MCUs are expected to become one of the fastest-growing segments in the MCU market.

Simultaneously, as the architecture of automotive electronics transition from distributed systems towards centralized configurations, the demands on MCUs are escalatingExpectations for performance, integration, functional safety, and information security are becoming increasingly stringentHigh-performance, reliable automotive-grade MCUs are evolving into mainstream market productsThese controllers need to enable virtualization and isolation among various tasks, demanding substantial know-how and research experience from chip manufacturers.

In recent years, international players like Infineon, STMicroelectronics, and NXP have been advancing automotive-grade MCU technology towards enhanced manufacturing processes, increased computational performance, and higher integration levels to meet the market's future consumption needs for high-performance MCUs across diverse domains

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Concurrently, Chinese automotive MCU manufacturers have been experiencing rapid growth and are now focusing on upscale applications.

The shift towards creating genuinely advanced intelligent vehicles is well underway, and the competition for automotive-grade MCUs is becoming increasingly fierceLeading manufacturers are continuously launching innovative products and technologies to seize opportunities in the higher-end MCU market.

In the realm of automotive electronics, MCUs are indispensable, acting as the core for operational control across various systemsTheir influence spans multiple domains, including powertrains, advanced driver assistance systems (ADAS), network connectivity, chassis safety, infotainment, and body electronics.

A deep dive into the industry landscape reveals that the global automotive MCU market has long been dominated by a few key playersRenowned companies like Renesas, NXP, Microchip, Infineon, STMicroelectronics, and Texas Instruments collectively account for over 90% of market share.

Despite China holding the position of the world's largest automobile manufacturer and seller for the past 15 years, and leading the global market in new energy vehicles for nine consecutive years, the automotive-grade MCU sector has historically been heavily reliant on importsAccording to data from IC Insights, the self-sufficiency rate of Chinese automotive-grade MCUs was less than 5% in 2021, with the market being predominantly occupied by foreign brands.

On the demand side, China's automotive market commands around 30% of the global share, and the demand for automotive-grade MCUs is on a rapid riseOmdia's analyses project that the Chinese automotive-grade MCU market size may increase from $2.59 billion in 2022 to $3.65 billion by 2026, reflecting a compound annual growth rate of 8.92%, far exceeding the global MCU industry average growth rate of 5.8%.

Furthermore, amid recent industry challenges such as chip shortages and frequent trade tensions, Chinese automotive manufacturers and Tier 1 suppliers have begun to recognize the importance of chip independence, security, and control

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Coupled with strong national industrial policy support and a gradual movement towards localized automotive chip production, downstream enterprises are augmenting their procurement of Chinese MCU products, thus creating new opportunities for manufacturers in China to expand their market presence and customer base.

Taking advantage of this opportunity, Chinese MCU companies have experienced rapid growth and technological advancementsCompanies like Gigadevice, Goke Microelectronics, and BYD Semiconductor have transitioned from established consumer and industrial-grade MCU technologies to automotive-grade solutionsSimultaneously, companies specifically targeting automotive-grade MCU products, such as Xinchip Technology, are also gaining momentum.

For instance, in April 2022, Xinchip Technology unveiled its high-performance, high-reliability automotive-grade MCU series "Kongzhixin" based on the ARM Cortex-R5F architecture, offering CPU frequencies up to 800MHzIt is notable for being the first in China to achieve the German TÜV certification for ISO 26262 ASIL D and IEC 61508 SIL 3 functional safety standards, and also the first Chinese MCU product to receive the Level 2 certification from the National Cryptography AdministrationThis product sets a new benchmark in terms of performance and reliability within the industry.

The launch of the Xinchip E3 series has filled a significant gap in the high-end, high-safety automotive-grade MCU market in China, representing one of the few domestic products capable of addressing critical application domains like chassis, steering, power management, battery management systems (BMS), and advanced driver assistance systemsLast October, a suspension controller equipped with the Xinchip high-performance MCU was mass-produced for several vehicle models, marking the E3 series as the first automotive-grade control chip used in active suspension systems in China.

So far, more than 100 clients have adopted the E3 in their product designs, covering manufacturers, intelligent driving companies, lidar suppliers, and battery manufacturers, with total shipments exceeding 1.5 million units.

At the April Beijing Auto Show, Xinchip further expanded its portfolio with a new family of MCU products designed for regional controller applications, enhancing its strategic positioning in the high-performance automotive-grade MCU arena.

Xinchip's ascendance exemplifies how domestic MCU products are gradually gaining market acceptance

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Collaborations with local manufacturers are deepening, leading to the application of domestic MCUs shifting from conventional scenarios such as window and lighting controls to critical systems like chassis and powertrain controls, and advancing towards next-generation domain controllers.

As automotive electrical and electronic architectures transition towards centralized systems, the demand for MCUs, particularly for regional controllers, is surgingAccording to Bosch, this trend underscores the evolution in automotive EE architecture, requiring MCUs to meet new specificationsA shift towards domain controller nodes and intelligent edge nodes is apparent, demanding higher safety standards from MCUs.

More automotive manufacturers are designating zonal control units (ZCU) as core modules in their electronic control systems, which is reflected in the ongoing high market demandCurrently, major Tier 1 suppliers, including Bosch and Delphi, predominantly utilize solutions from leading providers like NXP, STMicroelectronics, and Infineon for their ZCU modules.

Meanwhile, Xinchip Technology has made strides with its new generation of regional controller chips, securing a significant head start in this domainThe E3 series focuses on I/O-rich, control-integrated, and computation-heavy configurations suited for body, chassis, and power domain applicationsThe performance metrics of this product line reflect the high-performance, high-safety, and comprehensive connectivity features seen in previous offerings.

Xinchip's flagship ZCU chip, the E3650, is specifically designed for cross-domain applications, boasting enhanced real-time processing capabilities and larger memory capacities, thus achieving competitive parity with international manufacturersThe E3650 utilizes the latest ARM Cortex R52 architecture with a high-performance lockstep multicore cluster, virtualization support, and non-volatile memory capacities reaching up to 16MB, alongside comprehensive I/O interfaces supporting over 300 connections, which is pivotal for realizing more integrated electronic architectures.

This chip also features a self-developed SSDPE hardware communication acceleration engine, effectively preventing data loss during the operation of all CAN FD channels, which optimizes CPU load and improves communication throughput rates.

Xinchip has advanced alongside international industry players, aligning with trends towards manufacturing processes such as 28nm, 22nm, and even 16nm for automotive-grade MCUs

The E3 series leverages cutting-edge 22nm process technology, marking a generational leap over most domestic alternatives that operate at 40nm to 90nm.

Moreover, the E3650 integrates the Xuanwu ultra-secure HSM security module to comply with ISO 21434 and Evita Full cybersecurity standards, while meeting AEC-Q100 Grade 1 and ISO 26262 ASIL D functional safety standards in response to growing cybersecurity concerns.

At the recent auto show, the TÜV Rheinland Group awarded the MCAL software of Xinchip's MCU chip an ISO 26262 ASIL D functional safety product certificationMCAL, standing for Microcontroller Abstraction Layer, serves as the foundational software for AutoSARXinchip’s developed MCAL software is designed for mass production, achieving the highest levels of safety certification for both the chip’s features and software functionalities.

In addition to the E3650 MCU for cross-domain applications, Xinchip has previously rolled out the E3119 and E3118 product series tailored for comprehensive vehicle I/O and body control systems, featuring two independent 400MHz high-performance application cores, an independent security core, and around 2MB of substantial SRAM capacity along with various peripheral and I/O resources that can support up to 326 usable I/OsOrders from multiple lead manufacturers and Tier 1 suppliers confirm the market’s recognition of these products.

With the introduction of this new generation of regional controller chip family, Xinchip has effectively strengthened its strategic positioning in high-performance automotive-grade MCUs, with applications becoming widespread in core areas such as regional control, body control, electric drive management, battery management systems, and intelligent chassis systemsIt signals a comprehensive lead from core control systems to advanced intelligent configurations.

Looking ahead, a new wave of competition in the smart vehicle sector is unfoldingAs we anticipate developments in 2024, both electrification and intelligence will emerge as crucial determinants in the success of the new energy vehicle industry.

China stands out as the largest market for new energy vehicles globally, leading at a unique pace in industry evolutions and in the agility of manufacturers and consumers alike towards adapting to new technologies

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