EV Growth Fuels Surge in Semiconductor Demand for Automotive Technology

The transition to electric vehicles (EVs) is driving unprecedented demand for semiconductors, a critical component in modern automotive technology. EVs require advanced chips for systems such as advanced driver assistance systems (ADAS), battery management, power electronics, and infotainment. With EV adoption surging, chipmakers are racing to secure their roles in the growing market.

According to the International Energy Agency (IEA), global EV sales exceeded 10 million units in 2022 and are projected to reach 30 million annually by 2030. EVs typically require up to three times more semiconductors than traditional internal combustion engine vehicles, amplifying the pressure on supply chains.

Raghavan Sampath, Business Development & Sales Head at MediaTek India, highlighted the sector’s rapid growth, especially in India’s two-wheeler EV market. “The Indian two-wheeler EV market is set to reach Rs 10,000 crore by 2025, with over three million vehicles, growing at a 50% CAGR over five years,” he stated. MediaTek’s collaboration with Jio Things aims to develop smart digital clusters and modules for EVs, reinforcing their position in this evolving industry. AI-optimised semiconductors are crucial for autonomous driving, enabling real-time data processing, sensor fusion, and intelligent decision-making. These chips also power vehicle-to-infrastructure communication, transforming traffic management and modernising mobility.

Mercedes-Benz India MD & CEO Santosh Iyer noted, “Semiconductors will define the future of automobiles. A robust ecosystem is essential to support EV demand for a software-driven, decarbonised future.” To meet this rising demand, the semiconductor industry is bolstering its supply chain through strategic partnerships and proactive measures. Sampath emphasised that collaboration across industries is key to managing risks, seizing opportunities, and driving innovation. As EV sales climb, semiconductors remain at the heart of this transformation, promising smarter, greener, and more efficient transportation.