Supercomputers in cars still miles away

Intel Qualcomm Inc. and Nvidia . - pioneers in the production of chips for computers and phones - are finding it harder to make inroads into the auto industry.

Consider Hyundai’s new 2015 Genesis, a luxury sedan brimming with semi-conductors that handle everything from automatic braking and lane-keeping sensors to blind-spot detection. Other chips enable the car to open the trunk when it senses the owner’s arms are full, and to sniff for carbon dioxide to decide if the cabin needs more fresh air.

While the Genesis represents the forefront of the auto industry’s use of chips, only a handful of the vehicles are provided with semiconductors by Intel. The main hurdle is the industry’s safety and reliability standards, which far exceed those for computers or phones. Instead, most of the electronic components are provided by long-time suppliers, such as Freescale Semiconductor Ltd., which have proven track records.

Hyundai’s Genesis illustrates the obstacles for Intel, Qualcomm and Nvidia - whose chips dominate in computers and phones - as they try to crack a potentially lucrative market.

The market for automotive chips is projected to grow 6.1 per cent to $27.9 billion this year, according to IHS. Even as the systems proliferate and software developers such as Google and others roll out plans for connected entertainment and mapping systems, carmakers have been slow to switch to unproven chip suppliers because their products are governed by rigorous safety requirements.

For autos, chips have to withstand temperatures as low as minus 40 degrees or as high as 160 degrees Celsius. They need to be available to carmakers for up to 30 years and have a zero failure rate, according to a study by PricewaterhouseCoopers LLP.

The newcomers are initially going after in-vehicle entertainment and driver-assistance functions by touting their strengths - Intel’s processing, Nvidia’s graphics capabilities and Qualcomm’s wireless communications. All three say they’ve got products in the market or coming that meet the most stringent automotive requirements.

Audi and other automakers are now using both Qualcomm and Nvidia to connect cars to the Internet and make them aware of their surroundings. Top-of-the line Audi models use more than 6,000 semiconductors.

Of the three newcomers, only Nvidia has so far brought in enough business from the automotive market to register on its earnings. Still, the chipmaker has a way to go before automotive makes an impression on its more than $50 billion in annual revenue. Intel is aiming to win more orders by offering carmakers whole systems - software and computers built on its chips - that it says can cut the time and cost it takes to build features into cars.

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