Intel is predicting semiconductors will account for more than 20% of the total premium vehicle bill of materials (BOM) by 2030, representing a five-times growth rate compared to 2019’s 4% figure.

To address the issue, the company has also announced plans to establish committed foundry capacity at its fab in Ireland and launch the Intel Foundry Services Accelerator to help automotive chip designers transition to advanced nodes

Speaking at the IAA in Munich, Intel CEO, Pat Gelsinger, forecast the total addressable market (TAM) for automotive semiconductors will nearly double by the end of the decade to US$115bn, accounting for more than 11% of the entire silicon TAM.

The trend is being driven by what Gelsinger calls “the digitisation of everything” and four superpowers; ubiquitous compute, pervasive connectivity, cloud-to-edge infrastructure and AI, which permeate automotive and mobility industries.

“This new era of sustained demand for semiconductors needs bold, big thinking,” said Gelsinger. “As CEO of Intel, I have the privilege to be in a position to marshal the energies of 116,000 employees and a massive chip-design and manufacturing ecosystem, to meet demand.”

Gelsinger noted Intel has plans to build at least two new semiconductor factories in Europe with plans for future investments that could reach EUR80bn during the next decade. He also detailed elements of the company’s previously announced IDM 2.0 strategy and shared how the programmes will apply specifically for the automotive and mobility industries in the EU.

Intel Foundry Services, announced in March, is engaged in discussions with potential customers in Europe, including automotive companies and their suppliers.

The majority of automotive chips are manufactured using legacy process technologies. As automotive applications transition to rely on more high-performance processing, chips are also beginning to migrate to more advanced process technologies.

Intel is partnering with automotive players and committing resources in Europe to help drive the transition.

The company is standing up a new design team and offering both custom and industry-standard intellectual property.