Microchip Technology Inc. has finalized the acquisition of VSI, a Korean company specializing in high-speed, asymmetric connectivity technologies for automotive applications.
The acquisition aims to strenghten Microchip’s automotive networking portfolio, integrating VSI’s ASA Motion Link technology with Microchip’s existing Ethernet and PCIe solutions. The transaction details have not been disclosed.
“This acquisition brings VSI’s knowledgeable team, their market traction and ASA Motion Link technologies and products to Microchip’s expansive automotive networking portfolio to better serve the ADAS megatrend we are focused on,” said Mitch Obolsky, senior vice president of Microchip’s automotive products, networking and data center business units.
Currently, the automotive industry is seeing increased adoption of advanced drive assistance systems (ADAS), in-cabin monitoring, safety features and digital cockpits.
This trend is expected to drive the market size of automotive radar, camera, and lidar modules to US$27b in revenue between 2022 and 2028, according to Yole Group.
To meet requirements of the shifting environment of next-generation software-defined vehicles (SDVs), there is a need for highly asymmetric raw data and video links with higher bandwidths. Microchip states that current, proprietary serializer/deserializer-based solutions are no longer sufficient to address these requirements. As a result, the Automotive SerDes Alliance (ASA) was established in 2019 and released the first open standard ASA Motion Link (ASA-ML) specifications. Today, the ASA comprises over 145 members including Microchip.
ASA-ML brings link layer security and scalability, supporting line rates from 2Gbps to 16Gbps. BMW Group has announced its adoption of standardized ASA-ML for upcoming vehicle production, which Microchip says shows the importance of leveraging standardized technologies in vehicle architectures.
Obolsky said, “As the industry converges around three primary IVN pillars – Ethernet, PCIe and ASA Motion Link, camera and display connectivity is one of the fastest growing and largest IVN markets. With VSI, Microchip can now offer products that span all three pillars and also provide automotive security, microcontrollers, motor control, touch and power management solutions to our customers to enable their next-generation software-defined vehicle architectures.”
Steve Kang, CEO of VSI, said, “This acquisition brings together two organizations with a shared commitment to advancing technology through innovation. We look forward to successfully deploying our solutions in production vehicles for years to come.”