In place of famous Silicon Valley names, a network of established automotive electronics and software suppliers is developing advanced driver-assist systems, connectivity and autonomous features that are customized to OEM specs instead of being hand-me-downs from the consumer electronics industry.
WardsAuto argues that Silicon Valley companies aren’t going to control the driverless car market, both because car manufacturers are on their toes, and because the supply chains are so important and intricate.
I think kind of probably right, but misses the point.
Looking at the mobile phone industry — which is a somewhat analogous — Apple and Google control the operating systems, and Silicon Valley start-ups come up with the cool applications.
The layer in the middle — actually constructing the phones — is controlled by OEMs and suppliers in Asia.
The middle layer is the most commodified and least profitable layer of the value chain, though.
Originally published at www.davidincalifornia.com on October 22, 2015.
David Silver 