How does The Increase In Electric Vehicles Affect The Semiconductor Industry?
Now there are approximately 7.2 million electric cars on the road worldwide. What’s going on? Take a look at the US for example, where tighter CO2 emissions standards, government incentives, and regulatory policies all contribute to the demand and production of electric vehicles.
Another contributing factor to the increasing number of electric cars on the road is improved battery life, allowing drivers to go farther distances. These vehicles are considerably more attractive to the general public now that they can travel further.
Increased Demand & Use of Semiconductors:
Advances in semiconductor technology have improved battery capacity and allowed electric vehicles to travel further distances on a single charge, and demand for more automobiles has risen. The increase in demand for electric cars subsequently raises the demand for more and more efficient semiconductors.
Electric vehicles run on semiconductors, which are the lifeblood of electric cars. They rule the whole electric system’s performance. In reality, the total value of semiconductors utilized in an electric car is more than twice that of a conventional internal combustion engine. Semiconductors are the heart of electric automobiles.
Semiconductor technology must advance alongside electric vehicles for them to get greater mileage, and be cleaner, safer, and smarter. And, the more complex an electric car is, the more semiconductors it will require.
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The Evolution of Semiconductors
The advancement of microchips has aided considerably in the reduction of the costs of electric vehicles. Both newer semiconductors, Silicon Carbide (SiC) and Gallium Nitride (GaN) are less expensive than the original silicon devices (Si). Electric automobiles originally used Si semiconductors with a poor battery life that required charging frequently.
The next-generation material, known as SiC, has improved battery life while simultaneously being able to run electric buses and semi-trucks. GaN is a type of semiconductor that has been utilized in smartphones and laptops and will provide the maximum performance out of your electric vehicle.
Electric vehicles just like cell phones and computers have benefited from technological progress. They take a product that appears to be unattainable and make it possible for the masses.
The Downside: Global Chip Shortage
Semiconductors are utilized in a wide range of applications. Can we keep up with the demand? At present, no. The need for semiconductors is outpacing the supply.
The demand for semiconductors has increased dramatically since the start of the COVID-19 epidemic, and supply is strained. Because electric vehicles require so many semiconductors in each vehicle, the addition of more electric vehicles exacerbates the scarcity problem.
Because of the high cost and difficulty in obtaining such materials, designers are restricted to a tiny selection of components. The scarcity of silicon used in these chips means that it takes a long time to create. Switching from silicon to GaN technology in the future would result in greater supply and lower manufacturing costs.
There has been a severe scarcity of semiconductors in recent years, which is a genuine concern for automobile manufacturers and battery suppliers alike. Many businesses have halted operations as a result of it.
Most companies have claimed that the shortage of semiconductors is no more. In reality, due to the global chip shortage, not only semiconductors but other electronic components also have limited or no supplies.
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