It took Nvidia 10 years to be accepted as a component supplier by the automotive industry. Other technology companies are also looking to expand into similar markets, expanding their business from consumer electronics to automotive components. For many years, NVIDIA has provided a powerful graphics processor for game consoles and laptops. Under such circumstances, Volkswagen also contacted NVIDIA to find out whether such 3D display technology could be introduced into the center console of Audi. At the same time, NVIDIA engineers found that they could not use chips designed for notebooks or game consoles directly in cars. Danny Shapiro, senior director of NVIDIA's automotive business, said: "We need to learn what 'vehicle-level' means." In short, this means that there can be no restart because the center console screen cannot Light up, then the user will be angry, and the cost of the warranty will be very high. For 10 years, Nvidia has successfully expanded its business from computers and game consoles to fast-growing high-end automotive displays and autonomous driving systems. Other Silicon Valley technology companies are also trying to emulate NVIDIA's approach to unifying cars and digital devices. NVIDIA's processors have been successful in models such as the Audi A8 and the Tesla Model S. This also shows that automakers are breaking the boundaries of traditional suppliers to get more advanced technology. Ulrich Hackenberg, head of Audi's technology development, said that "the computing systems they provide" can handle the vast amounts of data needed for the latest driver assistance systems and displays. In the traditional automotive chip market, Nvidia is still a small manufacturer, and the company has a long way to go in the future. Some of the larger manufacturers, such as Renesas Electronics of Japan, Texas Instruments, Intel and Qualcomm of the United States, are still leaders in the automotive chip market. In the most recent fiscal year, Nvidia’s revenue was $4.7 billion, while car chip sales accounted for only 4%. Last year, Texas Instruments' sales of the automotive semiconductor business reached $1.96 billion, while NVIDIA's business was only one-tenth the size. Brooke Williams, Texas-based driver assistance systems business manager, said that after 35 years of auto chip business, Texas Instruments has known how to deal with the needs of automakers. “We understand the car design cycle and how car manufacturers and suppliers work,†he said. NVIDIA has now entered the market for in-vehicle infotainment systems, but has not yet been involved in driverless cars. In 2011, NVIDIA's automotive chip business generated sales of only $23 million. Since then, the company has achieved extremely high growth rates. The company expects revenue for the auto chip business to be $183 million this year. For the future of the automotive business, the company has recorded more than $2 billion in revenue, most of which is related to digital display and entertainment system chips. NVIDIA expects that by 2020, the company's chips will be used for 32 million vehicles. NVIDIA is trying to break into emerging markets and provide driver assistance systems for these markets, including automatic parking, semi-automatic steering and braking systems. Such systems require chips that are small in size but powerful in computing power. Currently, NVIDIA has developed the Tegra X1 chip and is selling it to users in the automotive and gaming industries. Nvidia said the Tegra X1 encapsulates the computing power of a supercomputer in a stamp-sized chip. Morgan Stanley analyst Joseph Moore said: "NVIDIA brings unparalleled graphics capabilities, which may be critical to the development of driver assistance system modules." Some customers appreciate NVIDIA's technology, but are not sure whether this technology meets their standards. And Nvidia learned from it. In the early days of the collaboration, an Audi executive invited Invista engineers to the Audi plant in Ingolstadt, Germany. Matthias Halliger, senior systems architect for Audi Connected Automotive Technology, said: "We told NVIDIA engineers, 'You only produce one component, and here we need to assemble 10,000 components into one car. Even if one component is damaged, we will face problems." To illustrate the seriousness of the problem, an Audi guide pointed out that there was a limousine that was refused to receive the goods due to flaws in the paint. Halig said that the factory visit "helped Nvidia understand our needs. This is a good show of what we want." However, there are still many things that Nvidia needs to learn. The normal car production cycle is 5 years or more, and many consumer products are only 1 year. NVIDIA needs to work with its suppliers to ensure that critical components, such as memory and power modules, can be upgraded on demand over a longer lifetime. Nvidia CEO Huang Renxun said: "When you work with car manufacturers to participate in their development process, you will accept their culture for many years. However, the automotive industry is eager to be reshaped."
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This is already 10 years ago. In the past 10 years, there have been many product changes for Silicon Valley, but for automakers, there will not be too many replacements in 10 years. It took NVIDIA six years to develop the display chip for the 3D navigation system, which has been used in the 2011 Audi A8. In general, NVIDIA can develop new chips for gaming applications in just three to four years. 