Chips will cost 20% of the price of electric cars by 2030

Regarding the cost of Chips, Intel’s CEO, Pat Gelsinger, made an interesting statement recently, as he estimates that chips and semiconductors in general will cost, as far as the BOM (Bill-of-Materials) is concerned, as much as the power-train of an electric car.

In fact, during his keynote at the 2021 IAA Mobility Motor Show held in Munich, Germany, Pat Gelsinger said that this development is expected within the next ten years (2030). The assessment of Mr. Gelsinger seems to agree with research conducted by Roland Berger and McKinsey & Company companies on semiconductors and electric cars.

Read more: Before 2033 the world domination of electric cars

In 2019, chips made up about 4% of a car’s BOM, and of course we’re talking about the optional infotainment system and the brain or ECU.

By 2030, however, the brain and other chips will take on much more complex and important roles, including self-driving or artificial intelligence, and as is well known, the future in personal travel is none other than a fully autonomous vehicle or AV.

Pat Gelsinger even estimated that the TAM (Total Addressable Market) size of the automotive semiconductor industry by the end of the decade will reach $115 billion.

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