Future of Electric Vehicles: How Advanced Tech Drives Up EV Chip Costs

Because of these new features, the demand for specialized EV semiconductor chips is growing. A recent report by India’s NITI Aayog found that the cost of semiconductor chips in each vehicle is set to double from about $600 to $1,200 by 2030.

In other words, the cost of EV chips is going up sharply. This increase is mainly due to the extra hardware needed for smart features like ADAS, IoT connectivity, and autonomous driving, all of which require more powerful chips. For example, an EV might contain dozens of tiny computer chips to run everything, which adds to the overall cost.