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Advancing Automotive Connectivity: Microchip Acquires VSI

Strengthening Connectivity for Future Vehicles

Microchip Technology, a leading semiconductor industry player, has successfully completed the acquisition of Seoul, Korea-based VSI Co. Ltd. This company is renowned for its specialization in high-speed, asymmetric connectivity technologies and products for cameras, sensors, and displays, based on the open standard of the Automotive SerDes Alliance (ASA) for In-Vehicle Networking (IVN). This strategic move promises to accelerate the development and deployment of Advanced Driver-Assistance Systems (ADAS), in-cabin monitoring, safety and convenience features, and multi-screen digital cockpits for the next generation of Software-Defined Vehicles (SDVs).

Driving Growth in the Automotive Industry

The automotive radar, camera, and LiDAR module market is on track to double in size, reaching USD 27 billion in revenue by 2028, driven by the increasing adoption of ADAS and other advanced features in vehicles. Current links of data and video, based on proprietary serializer/deserializer (SerDes) solutions, are proving inadequate both commercially and technically against the demands for higher bandwidth and asymmetric data. The ASA, formed in 2019, has responded to these needs by introducing the first ASA Motion Link (ASA-ML) specifications, an open standard set to revolutionize IVN connectivity.

Joining Forces to Lead Innovation

Mitch Obolsky, senior vice president of Microchip’s automotive, networking, and data center business units, highlighted the significance of this acquisition, stating it will bring VSI’s expert team, market traction, and ASA Motion Link technologies and products to Microchip’s extensive automotive networking portfolio. This places Microchip in a unique position to better serve the ADAS megatrend, with products covering the three main IVN pillars: Ethernet, PCIe, and ASA Motion Link. Additionally, with over 145 members, including leading automotive manufacturers like BMW, GM, and Ford, the ASA strengthens as an open standard, offering link layer security and scalability for line rates from 2 Gbps to 16 Gbps.

The acquisition of VSI not only bolsters Microchip’s portfolio with advanced technologies but also underscores the company’s commitment to innovation in next-generation vehicle architecture, marking a significant milestone in the evolution of automotive connectivity.