**[Industry Insider] “Focusing on One Component Could Lead to Failure…Dedication to SiP Integration”**
[Digital Daily Reporter Go Seong-hyun] “The automotive semiconductor market is increasingly centered on high-performance computing (HPC) with advancements in infotainment, autonomous driving, AI, and central network gateway (CGW). Just like the shift from feature phones to smartphones, focusing on a single component could result in losing the existing market. Telechips’ diverse chip portfolio will become a powerful tool in this architecture-driven market.”
Korean automotive semiconductor design specialist (fabless) Telechips has unveiled its product development roadmap aimed at advancing to a global company. While continuing to develop system-on-chip (SoC) for infotainment (IVI) systems like Dolphin3 and Dolphin5, the company plans to secure competitiveness in chips for networks, AI, and advanced driver assistance systems (ADAS) to target the market from multiple angles. Additionally, they aim to develop system-in-package (SiP) products integrating these functions to compete with global fabless giants.
Lee Jang-gyu, CEO of Telechips, stated during a meeting at the company’s headquarters in Pangyo’s 2nd Techno Valley, “While progressing with the IVI SoC, we have been developing products for ADAS, autonomous driving, and microcontroller units (MCU) for four years. This is to follow the fast-paced direction of the smart automotive market.”
Founded in 1999, Telechips is a first-generation Korean semiconductor fabless company. Initially focusing on designing MP3 and PMP chipsets in the early 2000s, the company later ventured into the car audio, video, and navigation (AVN) and DMB set-top box chip markets, thereby entering the automotive semiconductor market in earnest. The current flagship products are the Dolphin3 and Dolphin5 IVI mobile application processors (AP). Major competitors in the IVI AP sector include global fabless companies like Qualcomm, NVIDIA, and MediaTek.
CEO Lee noted, “With the automotive market increasingly demanding safety, connectivity-driven cybersecurity due to autonomous driving and electrification, software-defined vehicles (SDV), which allow for real-time updates previously impossible in vehicles, are crucial. As the market shifts to a cloud-based development environment once hardware development completes, rapid development and continuous growth will form the business model.”
**Centralized Control Essential…Rapid Commercialization Based on Domain Processing Unit**
SDV allows for real-time updates and continuous advancements in autonomous driving technology, crucial for the substantial growth of the automotive industry. Transitioning to this requires integrating separate ECUs into a centralized SoC to manage the ‘Zonal Architecture’ platform. For the update of each vehicle function through the central SoC, interconnection among these components is indispensable, akin to upgrading apps like the camera or voice recorder through smartphone OS updates.
Telechips anticipates that vehicles will initially transition to a cross-domain architecture tying core elements due to challenges in achieving low latency and high-security levels necessary for zonal architecture. The domain processing unit (DCU) based structure, integrating ECU and network chips, is expected to be commercialized swiftly.
Lee emphasized, “Moving toward a zonal architecture, relying solely on IVI as a single component could lead to losing the market. Therefore, our most urgent task is to diversify these components.”
**Dolphin, Endorphin, AXON → Pursuing System-In-Package**
In alignment with this strategy, Telechips is advancing IVI and has a diverse chip portfolio including ADAS chips, AI accelerators, and CGW. They are developing the ‘Endorphin’ ADAS chip based on a neural processing unit (NPU), the network gateway processing unit ‘AXON,’ and the AI accelerator ‘A2X.’ Additionally, they are developing AI algorithms through their subsidiary MINDIN and electric vehicle battery management and diagnostic chips through the joint venture Auto Silicon with Above Semiconductor.
The Endorphin ADAS chip, started in 2019 using Samsung Foundry’s 14nm process, continues to collaborate with global automotive and Tier 1 customers for integration into mainstream future cars. AXON has entered the proof of concept (PoC) stage, and A2X is being developed for integration alongside central SoC.
Regarding AXON, Lee explained, “The vehicle network gateway chip is currently dominated by the Dutch company NXP. However, the increasing trend of communication chips in vehicles has led to high customer diversification needs. This could lead to the emergence of new synergy products.”
Telechips plans to mass-produce the Dolphin5 based on Samsung Foundry’s 8nm process next month, and they will venture into development and mass production of a high-performance version, Dolphin7, based on a 5nm process next year to maintain competitive dynamics.
In addition, Telechips is pursuing the development of an SiP integrating major chips like Dolphin, Endorphin, and AXON. This chip aims to enhance replacement and space convenience by being made into a small, pin-to-pin compatible module. Considering the long time required for vehicle chip integration, mass-production sales are expected to commence in at least 2-3 years.
Lee noted, “There’s a growing customer demand for a line-up from entry to mid and low segments with IVI transitioning to digital cockpits. Implementing pin-to-pin compatibility with increasing memory and power units involves higher engineering resources and cost burdens. Making them pin-to-pin compatible as SiP could offer similar or lower pricing advantages.”
He added, “Implementing this requires manpower to optimize DDR-based memory operating at high speeds to the chip. Using this SiP eliminates that necessity, forming a business structure similar to NVIDIA’s selling of AI GPU chips with integrated boards. If the price isn’t higher than making it themselves, I believe there will be sufficient competitiveness.”
Regarding SDV competitiveness, he mentioned, “Since high-performance chips are required from the start of SDV commercialization, the segmentation distinction will diminish greatly. Telechips is also preparing for chip virtualization and software virtualization.” He added, “There is a movement to prioritize reviewing Telechips’ chip solutions from a market demand perspective.”
Lee anticipates a significant transformation in the automotive market similar to the mobile market’s shift with smartphones. As more automakers emphasize user experience with rising AI demands, SDV is rapidly accelerating.
Lee stated, “The transition to smart vehicles is happening both structurally and solution-wise, comparable to the smartphone shift. This is why we continuously explore future sources of income outside infotainment. As market signals are consistently detected, we plan to diversify revenues through chip diversification, securing as much sales from other chips like network and ADAS as we do from the IVI AP market.”