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Auto OEMs Face New Competitive Threats

By: Ann Steffora Mutschler

EVs are creating openings for non-traditional players, creating havoc in the supply chain.

The success of Tesla — a company that had never actually built a chip or a car — was both a surprise and a slap in the face to the established players. The company didn’t call on traditional automotive Tier 1s such as Bosch and Continental as suppliers. Rather, it turned to companies like Mobileye, Nvidia, and others for its chips, setting in motion a rethinking of everything that goes into a vehicle, from architecture to design through manufacturing. And while OEMs have said they’ll still buy from Tier 1s, they’re also now talking to Tier 2 and Tier 3 suppliers directly.


“We’ve had a completeness checker that has been around probably for more than a decade, but it’s something that requires discipline, it’s iterative, it takes more expertise,” said John Hallman, product manager for trust and security at OneSpin Solutions. “But with some of the advances in automation, we’re breaking that barrier of entry much further down. So we’re applying it to items like processors where we can extract automatically extract a lot of information that’s needed, and then be able to perform these automated, complete types of checks through the formal tools very quickly. That’s a big part of where we’re going to grow here.”


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