MCU integration to increase as EV architecture evolves – An interview with STMicroelectronics (part 2)

As the automotive industry embraces electrification and advanced technologies, the role of Microcontroller Units (MCUs) becomes increasingly critical. The second part of this article explores the advancements brought by STMicroelectronics to address the challenges faced by automakers, as well as their strategic approach to competition and supply chain resilience.

To see the first part of the conversation with STMicroelectronics: On the evolution to centralized designs…

TH: Can we assume that PCM will enable you to compete at the 28 nm level and below, even in the STM32 markets?

DS: Indeed, PCM is already in production for automotive products, and it will soon be extended to the non-automotive space as well. This technology is well suited for both the current 28nm node and the next node, offering the highest memory density with strong robustness including high-temperature data retention (More information: PCM – STMicroelectronics) and the quality that automotive requires. These same qualities are highly beneficial for the non-automotive markets. We cannot forget the growing demand from industrial customers, where security and safety requirements are becoming increasingly stringent.

We are the pioneers in a certain sense. While this role carries some risks, we have successfully mitigated it, earning the trust of the biggest Tier 1s and OEMs. As a result, you will see this memory technology transitioning to new foundries and next-generation processes.

Yole Group is seeing an interesting trend in that since the chip shortage, people are realizing that MCUs are sometimes a bottleneck in the supply chain, and one way to resolve that is to simplify the product family. An example is Stellantis and Foxconn’s joint venture to define four different MCUs to cover around 90% of usage.

YY: How do you view this sort of trend, and do you see similar things happening at STMicroelectronics?

DS: Our approach emphasizes the value of roadmap granularity, which provides a significant advantage by allowing us to cover the market more effectively and address diverse needs. This is one of Stellar’s strengths – the capability to meet different requirements in terms of memory, performance, I/Os, and application-specific features.

Many OEMs have attempted to create a limited list of three or four suppliers capable of supporting everything. However, the market is very dynamic. It takes only a few months – not years – for a project to run development and ramp up production in China. As a result, companies are required to offer more than just commercial variants. And this is where we are positioned to deliver flexibility and scalability to meet these rapidly evolving needs.

It’s evident that many traditional OEMs have struggled to prepare adequately for the shift to electrification. How each responds to the challenge, from West to East, will determine which companies succeed and which will stay behind.

We respect the strategies of all OEMs, focusing on providing the support they need to succeed. Our strategy relies on scalability, granularity, and efficient implementation. We focus on the real estate inside our chips and the associated costs, and ultimately, we sell the value that our solution provides. The robust memory, the architectural flexibility, and our integrated design approach offer significant value to the market.

YY: In that context, OEMs acknowledge MCUs are important and are trying to produce them for themselves, but as you mentioned, the success rate is low. What is your advice for OEMs to help them better understand the use of MCUs?

DS: It needs to be easy to migrate from a current solution to an X solution, whether from the same supplier or across different ones. We ensure that any entry point we offer to OEMs is easy to adopt and supported by a robust ecosystem of tools for smooth software migration while maintaining optimal performance within the same series. With Stellar P or G or the STM32 A series, we provide flexible options where parts can be easily substituted with each other. Whether you need more memory, more I/O, or performance with accelerators, you can easily scale.

OEMs should aim to base their vehicle architecture around standardized technologies. Ethernet is a great foundation, offering reliable protocols to move data and signals, with predictability built in. By using these standards, OEMs will gain the ability to scale rapidly.

There’s been a great deal of talk about the centralization of intelligence towards zones of control and domain controllers. Yole Group understands that there is a strong push towards a software-defined vehicle, moving all this intelligence so that it’s possible to do over-the-air updates within the car. There would seem to be certain economies of scale to keep microcontrollers separate from the more powerful GPUs and CPUs so that when you do over-the-air updates, you can make sure the updated functions don’t break the vehicle’s critical systems. And there are different models with different software packages that still have the same critical infrastructure built around a microcontroller.

TH: According to STMicroelectronics, what will the total cost of ownership of the entire product line be based on the choice of integration or segregation of controllers? Can you comment?

DS: It is important to understand that the vehicle, a deterministic system, must be tightly controlled. There are software-defined features that can be continuously improved and updated, creating recurrent value and revenue for OEMs.

Determinism is about allocating specific timeslots for critical operations such as braking, steering, and light control that must occur at precise moments to ensure vehicle safety and functionality. These deterministic functions are best managed in an MCU, where the developer has full control over timings and execution. The complexity of these deterministic functions will drive the evolution of the MCU, while the non-deterministic – specifically, the more behavioral part of the vehicle control – can be handled by central, high-performing MPUs.

MCUs will continue to drive the future of software-defined vehicles because the soft-defined path, which has to do with the behavior, requires a very “updateable” and upgradable MCU area. This over-the-air capability, today mainly centralized and limited to certain ECUs as a “premium” feature, will become more widespread as in-chip memory integration increases, allowing for seamless updates while the vehicle is in motion or when parked.

At STMicroelectronics, we are focused on understanding the impact of real homologation. Today, any change to the ECU may require a full re-homologation of the system, which is costly and time-consuming. Our goal is to establish scalable architectures that are capable of managing software changes without triggering the need for a new homologation process. This will save OEMs valuable time, resources, and money, especially as they compete with fast-moving Chinese companies that can rapidly develop new ECUs and concepts. The key challenge is balancing optimization and speed of execution.

We believe that Stellar can help streamline this process, reducing the OEMs’ efforts.

At Yole Group, analysts recently saw the news that STMicroelectronics is going to work with Hua Hong in China to manufacture MCUs locally for the Chinese market. And you also mentioned local packaging players in Asia. And here in Europe, there is a setup for production as well.

YY: What is STMicroelectronics’ strategy for the redistribution of the supply chain after the COVID-19 chip shortage to address supply chain concerns?

DS: The post-COVID-19 supply chain concerns are still present, having taught valuable lessons about supply risks. However, today, worldwide capacity to supply both automotive and non-automotive demand is sufficient. There’s no reason to panic because even with growing localization, there is enough to cover demand in the different regions.

From STMicroelectronics’ point of view, we are an IDM (integrated device manufacturer), and we manage everything from the design to manufacturing. To serve our customers globally and in China we have a balanced manufacturing footprint spread within our current 14 manufacturing sites in Europe and in Asia – including for packaging – and have established a China for China value chain. We are resilient from both a supply and sustainability point of view as we aim to be carbon neutral on scope 1 & 2, and partially scope 3, by 2027.

STMicroelectronics’ strategy for China is to create a differentiator that will help us gain a base with Chinese and global customers with the support of our selected partners. Our decision to enable our eNVM 40nm generation MCUs to be manufactured in China end-to-end means that the exact same process we are running in our 300mm Fab in Europe will be run in China, offering a seamless second source. We’re leveraging our capabilities and innovation combined with supply resilience.

TH: Do you see an increasing threat from Chinese players in automotive MCUs, where a deeper level of localization is strongly pushed by the government as well?

DS: We welcome competitors because they keep us sharp and motivated. Our competitors are indeed smart, but we are confident that our technology, innovation, and products offer unique value that allows us to stay competitive.

China is not a closed market – it’s open, and anyone can try to enter. Eventually, Chinese players will expand in Europe and globally: when that happens, we will need to demonstrate our value.

We are continuously learning and adapting to become more agile. We are ready to compete and succeed in China and globally because we believe we have substantial value to offer.

TH: So, to end this fascinating conversation, what can we expect from STMicroelectronics for 2025?

DS: The new year will be a transitional year. We will release several automotive microcontroller products and solutions, bringing to completion through 2025 and 2026 the first waves of Stellar P and G, and we will start to introduce STM32A while we prepare for the second wave. You can expect more products and other initiatives that highlight the growing capabilities of our MCUs.

Additionally, we will continue to expand our ecosystem and focus on showcasing the partnerships that we are building across different areas of the automotive segment. You’re going to see more STMicroelectronics products, better features, and a stronger ecosystem.

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As well as the Automotive Teardown Tracks.

Source: st.com

To see the first part of the conversation with STMicroelectronics: On the evolution to centralized designs…