Microchip Technology Inc. has completed the acquisition of VSI Co. Ltd., a Korea-based company specializing in high-speed, asymmetric camera, sensor, and display connectivity technologies for in-vehicle networking (IVN). VSI is known for its products based on the Automotive SerDes Alliance (ASA) open standard. The terms of the acquisition have not been disclosed.
The market for automotive radar, camera, and LiDAR modules is expected to grow significantly, reaching $27 billion in revenue between 2022 and 2028, according to Yole Group. This growth is driven by the increasing adoption of Advanced Driver Assistance Systems (ADAS), in-cabin monitoring, safety and convenience features, and multi-screen digital cockpits for software-defined vehicles (SDV). These applications require highly asymmetric raw data and video links with higher bandwidth, surpassing the capabilities of current proprietary serializer/deserializer (SerDes) solutions. In response, the Automotive SerDes Alliance (ASA) was formed in 2019 and introduced the ASA Motion Link (ASA-ML) specifications, the first open standard for automotive connectivity.
Microchip's acquisition of VSI brings VSI's team, market traction, and ASA Motion Link technologies and products into Microchip's automotive networking portfolio. This acquisition aligns with Microchip's focus on the ADAS megatrend. Mitch Obolsky, senior vice president of Microchip's automotive products, networking, and data center business units, states that the convergence around three primary IVN pillars—Ethernet, PCIe, and ASA Motion Link—makes camera and display connectivity one of the fastest-growing IVN markets. With VSI's expertise, Microchip can now offer products that cover all three pillars, as well as providing automotive security, microcontrollers, motor control, touch, and power management solutions.
The ASA has over 145 members, including Microchip as a promoter member, and 11 automotive manufacturers such as BMW, GM, Ford, Stellantis, and Hyundai-Kia Motors Corporation. The alliance includes a wide ecosystem of Tier 1 suppliers, semiconductor and imager vendors, and test and compliance houses. ASA-ML brings link layer security and scalability, supporting line rates from 2 Gbps to 16 Gbps. The upcoming specification update will also enable ASA-ML to support Ethernet-based architectures.
Steve Kang, CEO of VSI, expresses excitement about joining Microchip and addressing the growing ADAS and digital cockpit connectivity market. VSI is a leader in ASA-ML development and was the first to introduce compliant chipsets to the market. The company's products are being evaluated by car manufacturers globally, and they recently collaborated with BMW on a proof of concept to showcase ASA-ML and product readiness. The acquisition brings together two organizations committed to technological advancement and innovation, and VSI looks forward to deploying their solutions in production vehicles in the future.
In March 2024, BMW Group announced its intention to use standardized ASA-ML for upcoming productions, demonstrating their commitment to leveraging standardized technologies in their vehicle and video architectures.
