Ethernovia, an automotive ethernet chip start-up, has raised $64m as analysts predict chip shortages will continue to disrupt the automotive industry.
The Silicon Valley start-up is working on a streamlined hardware and software system to fulfil the rising demands of more driver assistance functions – without the need for dozens of different microchips.
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The Series-A funding round included Porsche Automobil Holding SE and VentureTech Alliance.
Ramin Shirani, Ethernovia co-founder and CEO, said: “We are extremely grateful for the vote of confidence this group of industry-leading investors has given Ethernovia’s technology and vision for the future of the connected car.
“We take great pride in developing the cutting-edge network architecture to power the car of the future.”
Ethernovia was founded in 2018 with the mission to build a single ethernet chip network that simplifies a vehicle’s electronic architecture.
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By GlobalData“These innovations set a new industry expectation in what can be achieved in meeting the cost, power and flexibility that car manufacturers and consumers demand in new vehicles,” Shirani added.
Auto industry chip shortage disruption continues
Ethernovia’s investment comes as semiconductor shortages continue to cause problems for the automotive industry, with some analysts predicting disruption will continue until at least the end of the year.
The global car industry, especially autonomous and electric cars, have been struggling with computer chip shortages due to the pandemic, the Russia-Ukraine war and US-China tensions.
A driving force for semiconductor chips comes from the autonomous vehicle industry, as the AI models controlling the routing, planning and vision of the cars require huge amounts of computing power.
Research firm GlobalData predicts that the global chip shortage will continue to cause disruption to the automotive industry throughout the year.
“Global economic growth will slow in 2023 amid rising price inflation driven by energy costs and the Russian-Ukraine war, impacting both demand and input costs for the semiconductor sector,” the research firm said.
“As a result, chip shortages will continue to ease, with only some disruption remaining for low-end microcontrollers and sensors, which are critical to several industries, including automotive.”
GlobalData is the parent company of Verdict and its sister publications.
