Semiconductor design and manufacturing are racing to deliver more compute density, more reliability, and more precision—all while advancing sustainability and strengthening ecosystem partnerships. While advanced packaging architecture helps, it’s not yet mainstream; Survey respondents indicate that 69% of automotive semiconductor assembly is still wirebond.

Across semiconductor automotive application areas and chip architectures, advanced materials—particularly in encapsulation, die attach, and thermal management—are consistently identified as critical to achieving automotive semiconductor goals. Of survey respondents, 81.3%* rank advanced materials as essential to meeting stringent automotive standards, including thermal cycling, vibration, and moisture resistance.

Advancements in autonomous vehicles (AVs) are accelerating, creating and elevating semiconductor requirements in kind. Survey respondents identified pressing challenges in:

To support electric vehicles (EVs), higher power semiconductor designs are needed for inverter power conversion, onboard chargers, and DC/DC converters. High-voltage and efficiency demands are replacing traditional silicon with wide bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN). This shift, however, introduces new complexities in design and manufacturing.

Survey respondents share that as semiconductor density rises, thermal management emerges as the top concern, followed by dense design constraints, electromagnetic compatibility, and reliability. SiC and GaN chips are reshaping assembly requirements, shifting to highly precise, thermally optimized, and reliability-focused manufacturing approaches that align with the demands of next-generation power electronics.

Automotive reliance on semiconductors for connected vehicles and just-in-time production has made supply chain resilience a board-level concern. To reduce risk, respondents are focusing on better visibility into early-stage suppliers, expanding and diversifying sources, and strengthening collaboration and multi-sourcing. Overall, the shift is toward greater transparency and proactive partnerships rather than major structural changes to the supply chain.

Similarly, sustainability in automotive semiconductor assembly has become a board-level priority. Manufacturers must balance ESG compliance with energy-intensive production, making internal operations a key area of focus. The top initiative is increasing the use of renewable energy, followed by recycling chips and partnering with environmentally responsible suppliers, reflecting a growing emphasis on both operational efficiency and sustainable sourcing.

Looking forward, the automotive semiconductor industry must balance innovation with resilience and responsibility. Advanced materials will remain at the core of this journey, enabling the reliability, precision, and performance required for next-generation vehicles. Through continued collaboration and technological advancement, the industry is poised to deliver the high-performance, sustainable solutions that will drive the future of mobility.

At Henkel, we partner with leading semiconductor technologists, helping them build and deploy sustainable, high-performance advanced packaging designs to fuel innovative semiconductors in the automotive industry. Please reach out to discuss your specific needs.