Battery management systems top electric vehicle issues

Infineon Technologies has advanced to become the world’s foremost supplier of chips for automotive electronics, according to the most recent study published by Strategy Analytics. According to Strategy Analytics, Infineon captured a 9 percent share of the global market with sales totaling $1.31 billion in 2009. Infineon strengthened its market position even though it was a crisis year for the automobile industry, with the overall market for automotive chips contracting by 21 percent to $14.4 billion in 2009 (compared to $18.3 billion in 2008).

In Asia, Infineon’s market share grew to 8.8 percent, reaffirming its number two position. Excluding automotive entertainment electronics, Infineon in fact is market share leader in the Asian ranking. The company also continues to lead the market in Europe, recognized as a key center of innovation in the field of automotive electronics, with a market share of 13.6 percent. In North America, Infineon ranks second, with a market share of 7.8 percent; while in Japan, Infineon holds 2.8 percent of the automotive semiconductors market.

In an interview with EDN Asia, Chua Chee Seong, Vice President, Automotive Regional Center, of Infineon Technologies Asia Pacific Pte Ltd discusses some of the challenges and latest developments in the automotive electronics industry. Excerpts:

The automotive industry has suffered severely last year. How has this affected your business, and what level of upturn are you seeing in the market right now?
Most of the automotive industry players from OEMs to Tier-1 and 2 suppliers are affected severely by the downturn in late 2008 and early 2009, with the exception of the China market. Infineon’s automotive segment had also reported a drop in quarterly revenue by more than 30 percent in the fourth quarter of 2008 compared to the previous quarter. Since the second quarter of 2009, Infineon’s automotive segment revenue has recovered gradually. In the fourth quarter of last year, our revenue is about 90 percent of our 3Q08 revenue.

What are the strongest market opportunities that you see at the moment?
The ultra-low-cost car segment and electric vehicles industry.

What are the significant challenges right now in the automotive semiconductor industry?
To balance between affordability and reliability in ultra-low-cost cars, and the battery cost in electric vehicles.

How is the company addressing these challenges?
We are now working closely with our customers to define the requirements carefully in order to maintain the affordability and reliability of the solution. This is still our “Automotive Excellence” mindset, where quality or zero defects come first.

How different are the automotive markets in the U.S. and Europe compared to Asia, especially in India and China?
The U.S. and European automotive industries are more regulated as compared to India and China, especially on safety requirements. These markets are also more matured. China and India, meanwhile, primarily focus on cost rather than features or performance of the semiconductor devices. However, as consumers or drivers become more experienced in the future, these two markets will definitely approach that of the U.S. or Europe.

What are some of the latest developments in Infineon’s automotive electronics devices?
We have launched the HybridPACK family, which is the key component used in inverter systems for electric vehicles.

Could you name one market or technology to watch in 2010?
The battery management system, which is using active balancing, will be one of the important technologies in the electric vehicle.