Microchip Acquires ADAS and Digital Cockpit Connectivity Pioneer VSI Co. Ltd. to Extend Automotive Networking Market Leadership

Acquisition adds ASA Motion Link technology to Microchip’s broad Ethernet and PCIe automotive networking portfolio to enable next-generation software-defined vehicles

CHANDLER, Ariz., April 11, 2024 (GLOBE NEWSWIRE) -- Microchip Technology Inc. (Nasdaq: MCHP) today announces the completed acquisition of Seoul, Korea-based VSI Co. Ltd., an industry pioneer in providing high-speed, asymmetric, camera, sensor and display connectivity technologies and products based on the Automotive SerDes Alliance (ASA) open standard for in-vehicle networking (IVN). The terms of the transaction are not disclosed. 

The market size of automotive radar, camera and LiDAR modules is expected to grow by greater than two times between 2022 to 2028 to $27B in revenue, according to Yole Group¹. This anticipated growth is driven by the increased adoption of Advanced Driver Assistance Systems (ADAS), in-cabin monitoring, safety and convenience features (e.g., 360-degree surround view, e-mirrors) and multi-screen digital cockpits for next-generation software-defined vehicles (SDV). These applications will require more highly asymmetric raw data and video links and higher bandwidths, making current, proprietary serializer/deserializer (SerDes) based solutions no longer adequate, both commercially and technically. In response to these developments, the Automotive SerDes Alliance (ASA) was formed in 2019 and released the first open-standard ASA Motion Link (ASA-ML) specifications.

“This acquisition brings VSI’s knowledgeable team, their market traction and ASA Motion Link technologies and products to Microchip’s expansive automotive networking portfolio to better serve the ADAS megatrend we are focused on,” said Mitch Obolsky, senior vice president of Microchip’s automotive products, networking, and data center business units. “As the industry converges around three primary IVN pillars – Ethernet, PCIe and ASA Motion Link, camera and display connectivity is one of the fastest growing and largest IVN markets. With VSI, Microchip can now offer products that span all three pillars and also provide automotive security, microcontrollers, motor control, touch and power management solutions to our customers to enable their next-generation software-defined vehicle architectures.”