Microchip Acquires ADAS and Digital Cockpit Connectivity Pioneer VSI Co. Ltd.

12 April 240322-CORP-PR-VSI-9x5-r1b

Acquisition addsASA Motion Linktechnology to Microchip’s broad Ethernet and PCIe®automotive networkingportfolio to enable next-generation software-defined vehicles

Microchip Technology Inc. (Nasdaq: MCHP) today announcesthe completed acquisition of Seoul, Korea-based VSI Co. Ltd., an industry pioneer in providing high-speed, asymmetric, camera, sensor and display connectivity technologies and productsbased on the Automotive SerDesAlliance (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 Group . 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 requiremore 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 toMicrochip’s expansiveautomotive networking portfolioto better servethe ADASmegatrend 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 largestIVN markets.With VSI, Microchip can now offerproducts that spanall three pillars and also provide automotive security,microcontrollers, motor control, touch and power management solutions to our customers to enable their next-generation software-definedvehicle architectures.”

Today, ASA has over 145 members, including Microchip who is a promoter member. With11 automotive manufacturersincluding BMW, GM, Ford, Stellantisand Hyundai-Kia MotorsCorporation, the Alliance also includes an ecosystem ranging from Tier1 suppliers, semiconductor and imager vendors, to test and compliancehouses.In addition to being an openstandard, ASA-ML brings link layer security and scalability to support 2Gbps to 16Gbpsline rates.Furthermore, the upcoming specification update will enable ASA-ML to support Ethernet-based architectures.

“Microchip Technology is an established and trusted market leader in automotive networking known for their automotive quality and robust supply chain,and our team is excited to join them to address the growing ADAS and digital cockpit connectivity market,” said Steve Kang, CEO of VSI Co. Ltd. “VSI is a leaderin the development of ASA-MLproducts and was the first to introduce productsto the market. Our standards-compliant chipsets are being evaluated by car manufacturers worldwide.We recentlycollaborated with BMW in a proof of concept to showcase ASA-ML and our product readiness.This acquisition brings together two organizations with a shared commitment to advancing technology through innovation.We look forward to successfully deploying our solutions in production vehicles for years to come.”

In March 2024, BMW Group announced at the Automotive Ethernet Congress in Munich they would shift to using standardized ASA-ML for upcoming start of productions. BMW has always been at the forefront of in-vehicle networking innovation and strongly believes in leveraging standardized technologies in their vehicle architectures and now also their video architecture.

For more informationabout theASA Motion Link products, please contact your local Microchip sales teams.

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