Focus on chips

Automotive Industries, July, 2005

THE AUTOMOTIVE market is one of the most strategic and rapidly growing segments for Renesas. According to the latest forecast from iSuppli, the automotive semiconductor market had a compound annual growth rate of 10.7% between 2002 and 2005. Volker Politz, VP Automotive Business Unit, Renesas Technology America says the company expects the European and North American markets to grow steadily in the next several years, as it sees a continuous healthy demand in both markets. He answers questions from Ed Richardson of Automotive Industries:

Automotive Industries (AI): What is the significance (to customers) of the establishment of the Automotive Semiconductor Division as a business unit?

Politz: The automotive market is very demanding, due to the combination of requirements: high reliability, long development cycles, leading-edge technology and a stable supply chain. To address this dynamic global market, Renesas formed the first truly dedicated global business organization for the automotive electronics business in October 2003. We have a dual reporting structure, in which each business unit in the U.S. and Europe reports to its local headquarters as well as the automotive business unit headquarters in Japan. This is significant because the business unit has all the important capabilities to enable the timely delivery of high-quality automotive system solutions, including engineering, sales and marketing functions. Everyone in our team is experienced in automotive electronics and understands the challenges and requirements of the market. The Automotive Business Unit is focused on merging the customer's needs and wants with Renesas' semiconductor strengths.

Renesas has 350 employees worldwide in the Automotive Business Unit and 500 in design and development. We have over 30 employees dedicated to the US Automotive Business Unit.

AI: What is your product focus?

Politz: Renesas is a global semiconductor supplier with a broad range of semiconductor solutions with a primary focus on microcontrollers (MCUs) and microprocessors (MPUs). Applications include airbag sensors, stability control, powertrain, navigation, telematics, car audio, body electronics, electronic power steering, body electronics, dashboard and adaptive cruise control.

AI: What is the definition of a microcomputer and what does it do in a vehicle?

Politz: In a nutshell, a microcomputer is a small computer that executes software and monitors inputs to control various functions, from something as simple as a window motor to something as complex as a complete engine. There are two types of microcomputer: microcontrollers (MCUs) and microprocessors (MPUs). An MCU consists of a CPU (central processing unit), RAM (random access memory), flash memory for the storage of software, and peripherals that perform specific tasks such as timing or allow the MCU to interface with the rest of the electrical system. The main difference between an MPU and an MCU is that the MPU doesn't have on-chip flash memory.

AI: What do you see as the main trends in the manufacturing and design of computer chips, particularly for the automotive market?

Politz: In our opinion, the main trends in the automotive semiconductor market are:

* Growth of software requirements, which increases both the flash and RAM sizes.

* Increase in CPU speed to handle the higher complexities of new functions and requirements. This can best be addressed by increasing the CPU speed with smaller process technologies, using multiple CPU cores on a single IC, and using cache architectures.

* Reduced vehicle development cycles in order to satisfy end customers. This impacts the process technology that is chosen and the amount of resources needed for the design of that technology.

* New networking requirements and the evolution of existing networks. These factors have a dramatic impact on the way vehicle system architectures are designed and developed, as well as on the semiconductors that make them work.

AI: What is the importance of open architecture in chip design?

Politz: First of all, an open architecture is any CPU core that is either licensed to another semiconductor manufacturer or made available for reuse to several semiconductor suppliers. There is a perception that open architectures have a strong benefit. That may not always be the case, however.

Although chips based on an open architecture have identical cores, other important elements such as the peripherals, the flash memory and the RAM differ from one semiconductor supplier to another. Typically, those differences are significant enough to negate the benefits of having the same CPU core.

Al: What do you see as the most promising automotive applications? Politz:

* Navigation and car information systems--They are growing segments with increasingly sophisticated levels of integration.

* Safety systems--Airbag systems, ACC (adaptive cruise control), camera systems for backup monitoring, camera systems for safer parking, and occupant sensing are among the features many car buyers now want.