

Gear Up for Next-Gen E/E Architecture with Zonal Compute: The Automotive Industry's Game Changer
24-04-2024
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;text-justify:inter-ideograph"><i style=""><span style="font-size: 14pt; line-height: 116%; font-family: Arial, sans-serif;"><font color="#ffffff"><span style="font-family: "Segoe UI";">The road to software-defined vehicles is paved with innovative
E/E architecture. OEMs and chipmakers, make strategic choices now!</span><b style=""><o:p></o:p></b></font></span></i></p><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><o:p><font color="#ffffff"> </font></o:p></p><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;text-justify:inter-ideograph"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff"><span style="font-family: "Segoe UI";">Today's car market is all about
digital features, just like smartphones.
Features like self-driving cars, internet connectivity, electric power,
and car sharing (ACES) are what consumers crave. To meet these demands, cars
need to constantly update software, connect to digital services, and give
drivers easy access to data. This is where electrical/electronic (E/E)
architecture and software design come in – they're the key to reshaping the
entire car and chip-making industries.</span><o:p></o:p></font></span></p><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><span style="font-family:"Segoe UI",sans-serif;mso-fareast-font-family:"Segoe UI""><font color="#ffffff"> </font></span></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff"><span style="font-family: "Segoe UI";">Car E/E architectures have gone from basic setups
with separate ECUs for each function, to a growing number of interconnected
ECUs. Lately, domain-centralized architectures emerged, replacing multiple ECUs
with a few powerful domain computers.</span><o:p></o:p></font></span></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">The latest (5th generation) introduces zonal
controllers and central computer units (see Exhibit 1). This design has the
potential to handle more ECUs and simplify software but creates challenges for
carmakers like latency and optimal ECU topology (placement), where industry
designs differ greatly. This article dives into these trends and proposes
strategies for players in the automotive industry.</font></span></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff"><br></font></span></p><div style="text-align: center;"><font color="#ffffff"><img src="https://imagemaaz2023.blob.core.windows.net/images/fpt-to-shape-nvidia-01.jpg" style="font-family: "Source Sans Pro", -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 1rem; width: 300px; display: block;margin-right: auto;margin-left: auto;"></font></div><p></p><div style="text-align: center;"><font color="#ffffff"><br></font></div><p class="MsoNormal" style="text-align: center; margin-bottom: 0.0001pt;"><b><i><span style="font-family: Arial, sans-serif;"><font color="#ffffff"><span style="font-family: "Segoe UI";">Pictures 1</span><o:p></o:p></font></span></i></b></p><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><o:p><font color="#ffffff"> </font></o:p></p><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><o:p><font color="#ffffff"> </font></o:p></p><h2><font color="#ffffff"><b><span style="font-family:"Segoe UI",sans-serif;mso-fareast-font-family:
"Segoe UI""><span style="font-family: "Segoe UI";">Harnessing the Power of 5</span><sup><span style="font-family: "Segoe UI";">th</span></sup><span style="font-family: "Segoe UI";"> generation architecture to
Drive Automotive Innovation</span></span></b><b><span style="font-size: 24pt; line-height: 116%; font-family: "Segoe UI", sans-serif;"><o:p></o:p></span></b></font></h2><p class="MsoNormal" style="margin: 3pt 0in 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><o:p><font color="#ffffff"> </font></o:p></p><p class="MsoNormal" style="margin-bottom: 12pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">The biggest advantage of the latest architecture is simplifying
the ECU layout. However, automakers need to consider different technical
approaches during the switch. Here are the four key benefits:<o:p></o:p></font></span></p><p class="MsoListParagraphCxSpFirst" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: "Segoe UI", sans-serif;">1.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Easier Software Updates
(OTA):</span></b><span style="font-family: "Segoe UI", sans-serif;"> Many ECUs can create update bottlenecks and
complexity, making it harder to ensure safety, reliability, regulations, and
software authenticity. Zonal architecture consolidates these units, simplifying
updates and allowing rollbacks if updates fail.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: "Segoe UI", sans-serif;">2.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Independent Hardware and
Software Development:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Separating hardware and
software can speed up development. Zonal controllers, using software
abstraction layers, can combine functions previously handled by separate ECUs.
This reduces reliance on specific suppliers, shortens development times, and
allows for faster innovation. <o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: "Segoe UI", sans-serif;">3.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">More Powerful and Efficient
Processors:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Zonal controllers
consolidate the functions of multiple ECUs. Smaller chip sizes improve power
efficiency. New "system-on-chip" (SoC) designs combine central
processing units (CPUs), memory, and specialized hardware accelerators. These
accelerators enable precise data routing and independent processing. It's no
surprise then, that the latest SoCs for zonal controllers use chip sizes of 16
nanometers (nm) or smaller.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpLast" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: "Segoe UI", sans-serif;">4.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Simpler Wiring:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Zonal controllers act as data input/output (I/O) hubs, often
placed at the car's edge. This allows for a less complex wiring harness. This,
in turn, promotes standardization, simplifies production automation, and lowers
costs due to less specialized wiring skills needed. Considering that wiring
harnesses can account for 20% of a car's E/E architecture budget, this is a
significant benefit.<o:p></o:p></span></font></p><p class="MsoNormal" style="margin: 3pt 0in 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><o:p><font color="#ffffff"> </font></o:p></p><h2><font color="#ffffff"><b><span style="font-family:"Segoe UI",sans-serif;mso-fareast-font-family:
"Segoe UI"">The Zonal Controller Conundrum: Selecting the Most Cost-Effective
Architecture</span></b><b><span style="font-size: 24pt; line-height: 116%; font-family: "Segoe UI", sans-serif;"><o:p></o:p></span></b></font></h2><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">When designing zonal controllers, automakers and
suppliers need to consider different use cases and applications to find the
best fit for their needs. Here are four emerging approaches, each offering
unique benefits at varying costs:<o:p></o:p></font></span></p><p class="MsoListParagraphCxSpFirst" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><font color="#ffffff"><span style="font-family: Symbol; font-size: 1rem;">- </span><b><span style="font-family: "Segoe UI", sans-serif;">Basic I/O Aggregators:</span></b><span style="font-family: "Segoe UI", sans-serif;"> In the simplest form, zonal controllers act as gateways,
relaying information between sensors and actuators and the car's central
processing unit (CPU). This simplifies the wiring harness at the car's edge.
However, for safety-critical applications, latency (delays) can be an issue. To
address this, dedicated hardware for routing and switching data is often
needed, offloading some work from the main CPU.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><font color="#ffffff"><span style="font-family: Symbol; font-size: 1rem;">- </span><b><span style="font-family: "Segoe UI", sans-serif;">I/O with Power Control:</span></b><span style="font-family: "Segoe UI", sans-serif;"> This builds upon the basic design by adding power control and
distribution capabilities. Smart fuses enable precise power delivery to
different vehicle areas, allowing trade-offs between safety and comfort
features. Additionally, it allows for predictive load balancing and
comprehensive monitoring of circuit parameters. This approach offers new ways
to control and measure power flow, enabling features to be powered on or off
individually instead of the entire car. This can lead to improved range and
valuable data insights.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><font color="#ffffff"><span style="font-family: Symbol; font-size: 1rem;">-</span><span style="font-family: "Segoe UI", sans-serif;"> <b>I/O with Computing Power:</b></span><span style="font-family: "Segoe UI", sans-serif;"> Zonal controllers can also include processing capabilities,
particularly relevant for emerging "satellite sensors." These sensors
separate the physical sensor unit from the processing unit that interprets its
raw signals. This allows for simpler, more affordable sensors that can be
easily replaced if damaged. Meanwhile, the more expensive processing unit is
safely housed within the car's interior.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpLast" style="margin: 12pt 0in 12pt 0.5in; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><font color="#ffffff"><font face="Symbol">- </font><span style="font-weight: bold; font-family: "Segoe UI", sans-serif;">The All-in-One Zonal
Controller: </span><span style="font-family: "Segoe UI", sans-serif;">This combines all the
functionalities mentioned above, making it the most advanced and expensive
option. Interestingly, a recent McKinsey survey suggests that 53% of experts
believe this will eventually become the dominant model.<o:p></o:p></span></font></p><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><o:p><font color="#ffffff"> </font></o:p></p><h2><font color="#ffffff"><b><span style="font-family:"Segoe UI",sans-serif;mso-fareast-font-family:
"Segoe UI"">The E/E Revolution: How Zonal and Central Architectures Are
Transforming Industry Dynamics</span></b><b><span style="font-size: 24pt; line-height: 116%; font-family: "Segoe UI", sans-serif;"><o:p></o:p></span></b></font></h2><p class="MsoNormal" style="text-align:justify;text-justify:inter-ideograph"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">Car manufacturers (OEMs), major suppliers (Tier-1 players), and
chip makers face critical decisions in implementing new electrical/electronic
(E/E) architectures, considering various factors across the value chain.<o:p></o:p></font></span></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">They must understand which vehicle domains will be
affected, identify strategic positions, and recognize that different domains
have different requirements, with zonal controllers being suitable for areas
like body control, powertrain, and chassis. (Exhibit 4 shows this visually).</font></span></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff"><br></font></span></p><div style="text-align: center;"><font color="#ffffff"><img src="https://imagemaaz2023.blob.core.windows.net/images/fpt-to-shape-nvidia-02.jpg" style="font-family: "Source Sans Pro", -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif, "Apple Color Emoji", "Segoe UI Emoji", "Segoe UI Symbol"; font-size: 1rem; width: 804px;display: block;margin-right: auto;margin-left: auto;"></font></div><p></p><div style="text-align: center;"><font color="#ffffff"><br></font></div><p class="MsoNormal" style="text-align: center; margin-bottom: 0.0001pt;"><font color="#ffffff"><b><span style="font-family: Arial, sans-serif;">Exhibit 4</span></b><o:p></o:p></font></p><p class="MsoNormal" style="text-align: center;"><o:p><font color="#ffffff"> </font></o:p></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">The shift to zonal and central computer architectures
in car E/E systems presents opportunities and challenges across the automotive
value chain:</font></span></p><p class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Domains with High Compute
Needs:</span></b><span style="font-family: "Segoe UI", sans-serif;"> ADAS, AD, and infotainment require significant
processing power, likely necessitating dedicated central or domain compute
units.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Software and Middleware: </span></b><span style="font-family: "Segoe UI", sans-serif;">Various domains require different software stacks, emphasizing
the importance of automotive middleware solutions and the adoption of SOA for
flexibility.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Collaboration and
Integration: </span></b><span style="font-family: "Segoe UI", sans-serif;">Zonal and central compute
units may accelerate the breakdown of functional silos, requiring deeper
collaboration between tier-1 suppliers and OEMs.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">New Ecosystems and Standards:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Expect the formation of new industry ecosystems and standards,
particularly for non-differentiating elements of automotive hardware and
software.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Semiconductor Considerations:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Semiconductor companies will focus on scalable computer
platforms and explore collaboration models, with chiplets becoming more common.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Supply Chain Resilience:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Capacity reservations may become more common, and foundries are
expected to play a larger role in the automotive sector.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Tier-1 Competition and
In-Sourcing:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Tier-1 suppliers will
compete in architecture design, while OEMs may focus on in-sourcing and
customization, potentially leading to directed-buy arrangements.<o:p></o:p></span></font></p><p class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Software Skills as a
Differentiator:</span></b><span style="font-family: "Segoe UI", sans-serif;"> Strong software skills will
be crucial, providing a competitive edge for companies.<o:p></o:p></span></font></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">
</p><p class="MsoListParagraphCxSpLast" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><!--[if !supportLists]--><font color="#ffffff"><span style="font-family: Symbol;">·<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: "Times New Roman";">
</span></span><!--[endif]--><b><span style="font-family: "Segoe UI", sans-serif;">Balancing Costs and Benefits:
</span></b></font><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">To meet customer demands, the automotive value chain
must embrace zonal and central architectures while carefully balancing costs
and benefits for optimal transition models over time.</font><font color="#1f1f1f"><o:p></o:p></font></span></p><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;text-justify:inter-ideograph"><font color="#ffffff"><a href="https://www.mckinsey.com/industries/semiconductors/our-insights/getting-ready-for-next-generation-ee-architecture-with-zonal-compute#/"></a></font></p><p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span style="font-family: "Segoe UI", sans-serif;"><font color="#ffffff">Reference source: </font><font color="#1f1f1f"><o:p></o:p></font></span></p><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;text-justify:inter-ideograph"><a href="https://www.mckinsey.com/industries/semiconductors/our-insights/getting-ready-for-next-generation-ee-architecture-with-zonal-compute#/" target="blank"><b><span style="font-family:"Arial",sans-serif;mso-fareast-font-family:Arial;color:#1155CC">Getting
ready for next-generation E/E architecture | McKinsey</span></b></a><o:p></o:p></p><p>
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