The automotive software industry is on the verge of a significant expansion, projected to grow by nearly $30.88 billion between 2024 and 2028, with a robust CAGR of over 14.4%. This growth is driven by the increasing demand for in-car experiences, advancements in over-the-air (OTA) updates, and the rapid evolution of vehicle technology.
As a leader in semiconductor technology, Renesas aims to leverage this surge by innovating across the four verticals - microcontrollers, microprocessors, connectivity, and power solutions to cater to this dynamic market.
Expanding Horizons With Integrated Solutions
Renesas, the embedded design innovation company providing complete semiconductor solutions, is strategically positioned to capitalise on the growing intersection of software and automotive technology. The company is renowned for its extensive portfolio under four verticals— the core components, needed to fuel next-generation automotive architectures.
Speaking to Mobility Outlook, Malini Narayanamoorthi, President and Country Head, Renesas Electronics India, said, 'Our strength lies in offering a broad range of solutions, from luxury to compact vehicles, as well as two-wheelers. This flexibility in architecture allows us to cater to diverse customer needs.'
With automotive companies increasingly exploring high-performance computers (HPF) with zonal and distributed architectures, the company provides customisable solutions, whether customers require a single chip to perform multiple functions or prefer a multi-chip setup.
The company’s portfolio includes high-performance system-on-chips (SoCs) that address the compute needs of modern vehicles. These SoCs, combined with high-bandwidth memory and fast peripheral connectivity, ensure that the entire system functions efficiently.
'We understand that you can't have a fast brain with slow peripherals; everything must work in harmony to elevate the system,' she said emphasising the importance of balanced design across components.
Bridging Complexity Of New Automotive Architectures
As vehicle architectures shift from traditional distributed models to more integrated systems, Renesas is well-prepared to provide innovative solutions that accommodate these changes, she said.
The increasing use of advanced electronics and software in vehicles requires highly efficient systems capable of processing vast amounts of data in real-time. The company’s expertise in developing microcontrollers and SoCs for demanding applications such as 4D imaging and advanced driver-assistance systems (ADAS) makes it a critical player in this evolving landscape.
'We’re focused on creating the right kind of compute, memory, and interconnect capabilities that support evolving automotive technologies,' Narayanamoorthi said. With the automotive sector moving towards reducing the number of chips in favour of more powerful, consolidated systems, Renesas’ innovations are set to play a pivotal role in streamlining future vehicle designs, she said.
Expanding Presence & Expertise In India
Renesas is doubling down on its commitment to India, recognising the country as a growing market for both automotive and industrial applications. 'We aim to grow not just in numbers, but in building expertise across different verticals—from design to system solutions and application engineering,' she mentioned.
In addition to expanding its R&D capabilities in chip design, the company has acquired companies like Altium, (an Australian multinational software company that provides electronic design automation software to engineers who design printed circuit boards), enabling them to offer end-to-end solutions. This move highlights the company’s focus to the digitalisation initiatives of automotive and industrial applications.
According to Narayanamoorthi, Renesas’ India operations focus on all four key pillars necessary for embedded solutions: sensing, moving, computing, and actuating information. By building these capabilities in India, the company is uniquely positioned to create products that cater to both local and global markets, she pointed out.
Staying Ahead Amidst Global Competition
With growing competition from semiconductor giants, Renesas maintains a competitive edge through its deep expertise in automotive, industrial, and IoT edge solutions. 'One of our key differentiators is the breadth of our portfolio. Whether it’s luxury vehicles, compact cars, or a distributed model, we have solutions that cater to all,' she stated.
Renesas is also strategically leveraging its global presence across 30 countries. By merging the expertise from its numerous acquisitions, the company draws on diverse cultures and design philosophies to create innovative solutions.
Paving The Way For India’s Semiconductor Ecosystem
Narayanamoorthi said, the Japanese company is closely watching the evolution of India’s semiconductor manufacturing landscape. With several companies aiming to build fabs in India, it is gradually piecing together the puzzle of semiconductor self-reliance. 'India has strong capabilities in design, and we are seeing growth in manufacturing and packaging.”
However, more needs to be done, such as improving the logistics and material supply chain, she said, adding that the company is actively contributing to this growth, offering technology and expertise in semiconductor fabrication and packaging, which it has honed through its operations in Japan. The company sees India as a growing market and is focussing on supporting the country in becoming self-reliant in semiconductor production.
As the automotive software and semiconductor industries enter a phase of unprecedented growth, Renesas is leveraging its broad portfolio, cutting-edge SoCs, and expanding R&D footprint in India to remain at the forefront of innovation. With a clear focus on creating integrated solutions for the future of mobility, the company is not only navigating the complexities of the automotive landscape but actively shaping its future.
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