Microchip Strengthens Automotive Networking Portfolio with Acquisition of VSI Co. Ltd.
Microchip Technology (NASDAQ: MCHP) has finalized its acquisition of VSI Co. Ltd., a leading innovator in high-speed asymmetric camera, sensor, and display connectivity solutions based on the Automotive SerDes Alliance (ASA) open standard. This strategic move positions Microchip to capitalize on the burgeoning market for Software-Defined Vehicles (SDVs).
Fueling Growth in the Future of Automotive Technology
The market for automotive radar, camera, and LiDAR modules is projected to experience explosive growth, reaching an estimated value of $27 billion by 2028 (Yole Group). This surge is driven by the widespread adoption of advanced technologies like:
- Advanced Driver-Assistance Systems (ADAS)
- In-cabin monitoring
- Safety and convenience features (e.g., 360-degree surround view, E-Mirrors)
- Multi-screen digital cockpits
These next-generation SDVs demand high-bandwidth, asymmetric data and video links, rendering traditional proprietary SerDes solutions inadequate. To address this challenge, the ASA consortium was formed in 2019, releasing the first open-standard specifications for the ASA Motion Link (ASA-ML).
Expanding Connectivity Solutions for ADAS and Beyond
“This acquisition integrates VSI's expertise, market traction, and industry-leading ASA-ML technology into Microchip's extensive automotive networking portfolio," says Mitch Obolsky, Senior Vice President of Microchip's automotive business units. "With the convergence of Ethernet, PCIe, and ASA-ML as the core pillars of In-Vehicle Networking (IVN), camera and display connectivity represents one of the fastest-growing segments. By incorporating VSI, Microchip offers a comprehensive product portfolio encompassing all three pillars, along with additional automotive solutions like security, microcontrollers, motor control, touch, and power management. This empowers our customers to develop next-generation software-defined vehicle architectures."
A Collaborative Ecosystem for Open Standards
The ASA consortium boasts over 145 members, including Microchip as a promoter member. Notably, the alliance comprises 11 leading automotive manufacturers (BMW, GM, Ford, Stellantis, Hyundai-Kia) alongside Tier 1 suppliers, semiconductor and imager vendors, and test and compliance houses. Beyond its open-standard nature, ASA-ML offers:
- Link layer security
- Scalability for 2 Gbps to 16 Gbps line rates
- Upcoming support for Ethernet-based architectures
"We are thrilled to join forces with Microchip, a trusted leader in automotive networking renowned for its exceptional quality and robust supply chain," said Steve Kang, CEO of VSI Co. Ltd. "VSI is a pioneer in ASA-ML development, having brought the first compliant products to market. Our solutions are currently under evaluation by car manufacturers worldwide. We recently collaborated with BMW on a successful proof-of-concept showcasing ASA-ML and our product readiness. This acquisition unites two organizations dedicated to advancing technology through innovation. We are committed to the successful deployment of our solutions in production vehicles for years to come."
A Shared Vision for the Future of Mobility
In March 2024, during the Automotive Ethernet Congress in Munich, BMW Group announced its plan to adopt the standardized ASA-ML technology for upcoming vehicle production. This move underscores BMW's commitment to in-vehicle networking innovation and leveraging open standards across its vehicle architectures, including the video domain.
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