Automotive Embedded Systems Weekly Newsletter WK-38

September 15–20, 2025

This week was packed with major developments in the global automotive embedded systems arena—spanning electrification, AI, semiconductor advancements, and international manufacturing collaborations. Here’s a deep, engaging look at the most important stories and trends from the past seven days.

Top News & Innovations

Rimac’s Next-Gen Solid-State Batteries and Axles Debut at IAA Munich

Rimac Technology, famous for its electric hypercars, unveiled a major technological leap at IAA Mobility 2025 in Munich by showcasing its next-generation solid-state battery platform, co-developed with ProLogium and Mitsubishi Chemical Group. This new battery system is lighter, safer, and more energy-dense than conventional lithium-ion packs, and represents a significant milestone toward mass-market solid-state batteries. The new battery modules leverage advanced cell chemistries and innovative housing solutions, potentially enabling longer range and faster charging for future EVs.

Alongside battery advancements, Rimac revealed a new line of integrated e-axles, including single-motor units with power density exceeding 8 kW/kg and torque density exceeding 90 Nm/kg, as well as dual-motor axles targeting ultra-high torque applications. These innovations position Rimac as a key Tier 1 supplier for global automakers seeking cutting-edge electrified powertrains, with deals already in place with BMW, Porsche, and others.

XPeng’s AI-Centric G7 & Turing Chip Drive In-Vehicle Intelligence

Chinese EV maker XPeng’s G7 SUV has become a flagship for AI-powered mobility, integrating XPeng’s self-developed Turing AI chip—a milestone in the industry’s shift away from reliance on Nvidia’s autonomous driving silicon. The Turing chip, which debuted in the G7 Ultra edition, is built on a 40-core architecture, dual NPUs, and a neural network-optimized design, delivering up to 750 TOPS per chip and supporting AI models with up to 30 billion parameters—three times the compute power of leading autonomous driving chips such as Nvidia Orin-X.

This in-house silicon enables the G7 to deliver Level 3 autonomous driving capabilities, advanced in-cabin AI assistants, and breakthrough sensor fusion performance. XPeng’s in-house chips are part of a broader trend toward vertically integrated AI compute stacks, reducing dependency on Western chipmakers and unlocking new possibilities for real-time, on-device AI processing in cars.

Magna Begins European Assembly for XPeng EVs

In a landmark move, Magna International of Canada announced it will assemble electric vehicles for XPeng at its Graz, Austria, plant—a first for a Chinese automaker in Europe. Production of two fully electric XPeng models for the European market will begin in Q3 2025, marking a long-term strategic partnership and underscoring XPeng’s ambitions for global expansion. This collaboration signals a new era in which Chinese OEMs scale international operations by leveraging Western manufacturing expertise and localized production.

Silicon Labs Debuts 22-nm SoC for Edge IoT

Silicon Labs unveiled its SiMG301—the first wireless SoC built on a 22-nm process node, offering higher compute performance, enhanced security, and improved integration for line-powered smart devices. While the chip’s primary target is smart lighting (smart home, city infrastructure, etc.), the move to advanced nodes is a bellwether for the broader embedded market, including automotive. Smaller, faster, more secure, and more power-efficient chips are becoming the foundation for next-gen vehicle networking, connectivity, and edge AI applications.

Market Trends: AI, Centralization, OTA, and Security

The automotive embedded systems market continues its rapid transformation. Embedded AI accelerators are now standard in premium vehicles, with performance targets exceeding 1,000 TOPS for high-end ADAS and autonomous driving platforms. The shift from distributed to centralized and zonal ECUs is accelerating—reducing wiring, weight, and complexity while boosting compute power for software-defined vehicles.

Over-the-air (OTA) updates are becoming ubiquitous, with over 70 million vehicles globally expected to support OTA by 2026—enabling continuous feature upgrades and security patches without dealership visits. This is driving demand for secure boot, robust memory management, and multi-layered cybersecurity in every embedded platform.

Worldwide, the automotive embedded systems market is projected to grow at a CAGR of 5.4% through 2032—fueled by electrification, AI integration, and the need for real-time, connected, and secure vehicle electronics.

Regional Developments

• Asia-Pacific leads global embedded system production, especially in China, where XPeng’s Turing chip and EV manufacturing are setting new benchmarks.
• Europe is a hub for safety, sustainability, and R&D innovation, with Rimac’s Croatian facilities and XPeng’s Magna partnership in Austria highlighting cross-border technology flows.
• North America is accelerating in AI, autonomous, and connectivity, with strong investment in R&D and regulatory frameworks for next-gen vehicles.

Industry Impact & What’s Next

• Embedded AI and compute power are now the core differentiators in automotive electronics, with XPeng, Rimac, and tier-1 suppliers racing to deliver ever-faster, more efficient hardware.
• Solid-state batteries are inching closer to mass production, promising significant gains in EV range, safety, and charging speed—but cost and scalability remain the final hurdles.
• Vertical integration by automakers—controlling both hardware and software—is becoming a critical strategy for differentiation and supply chain resilience.
• Cybersecurity and OTA are no longer optional: They are foundational requirements for all new vehicle platforms, as connectivity and software-defined features proliferate.

The automotive embedded ecosystem is entering a phase of unprecedented innovation, driven by compute power, electrification, and software. For engineers, developers, and industry leaders, the challenge—and opportunity—is to build systems that are not just smart and connected, but also resilient, secure, and ready for continuous evolution.

Stay tuned for next week’s update as we track the latest in ADAS silicon, software-defined architectures, and global supply chain trends.

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