Microchip Acquires SerDes Innovator VSI

Microchip Technology has made a significant move by acquiring VSI in South Korea for its Automotive SerDes Alliance (ASA) open standard technology for in-vehicle networking (IVN). This strategic acquisition aims to enhance Microchip's automotive networking portfolio by incorporating VSI ASA Motion Link (ASA-ML) SerDes technology, alongside its existing Ethernet and PCIe solutions. The addition of ASA-ML technology will enable the development of next-generation software-defined vehicles, aligning with BMW's adoption of ASA technology.

Last month, BMW announced its decision to transition to using standardized ASA-ML for upcoming vehicle architectures, including their video systems. The adoption of ASA-ML brings benefits such as enhanced link layer security, scalability to support varying line rates from 2 Gbps to 16 Gbps, and compatibility with Ethernet-based architectures. This shift reflects a broader industry trend towards standardized solutions for automotive networking.

The Automotive SerDes Alliance (ASA) boasts a membership of over 145 companies, including 11 major automotive manufacturers such as BMW, GM, Ford, Stellantis, and Hyundai-Kia Motors. Additionally, Tier 1 suppliers, semiconductor companies, image sensor suppliers, and test and compliance houses are part of the alliance. This collaborative effort aims to drive innovation and standardization in the automotive networking sector.

According to Yole Group, the market size for automotive radar, camera, and LiDAR modules is projected to more than double between 2022 and 2028, reaching $27 billion in revenue. This growth is fueled by the increasing demand for Advanced Driver Assistance Systems (ADAS), in-cabin monitoring, safety features, and convenience functionalities like 360-degree surround view and digital cockpits. These advancements require higher bandwidths and more sophisticated data and video links, rendering traditional proprietary SerDes solutions inadequate.

"This acquisition brings VSI's expertise, market presence, and ASA Motion Link technologies into Microchip's extensive automotive networking portfolio, enhancing our ability to address the ADAS megatrend," stated Mitch Obolsky, senior vice president of Microchip's automotive products, networking, and data center business units. The convergence around Ethernet, PCIe, and ASA Motion Link as primary IVN pillars underscores the importance of camera and display connectivity in the automotive industry.