Newer cars are full of technology that does everything from detecting blind spots to automatic breaking. Models from Hyundai Motor are full of technology produced by many manufacturers. The automotive chip industry is expected to generate $27.9 billion this year and grow at a 6.1 percent per year. A new car carry more than $329 worth of semiconductors in each car and compare this to no more than $20 worth of semiconductors in an iPhone 5. The top suppliers of chips for automobile include Renesas Electronics, Infineon Technologies, STMicroelectronics, Denso, and Freescale Semiconductor. Intel, Qualcomm and Nvidia are trying hard to cut into the field and supply only very small amount at this time. Audi A7 uses Nvidia’s Tegra processor and Intel is making inroads with BMW, Nissan Motors and Hyundai.

Safety and reliability standards for chips in vehicles require far more compliance than computers and smartphones. Automobile chips require zero failure rate compared to 10 percent tolerance for electronics. Another difficulty is making chips that can withstand huge temperature fluctuations. Once installed, chips need to work for many years without having to replace constantly. Consumer expectations are also increasingly getting higher due to influence from other fast improving segments for higher speeds and power.