Intel is getting a little bit too eager in its courtship with Europe

Car manufacturers are worried about the chip shortage now, but they should also worry about their chip supply ten years from now, Intel CEO Pat Gelsinger warned during a keynote speech at the IAA auto show in Munich. He predicted that semiconductors would make up 20 percent of a premium car’s bill of materials by 2030, up from 4 percent today. “Semis become central to every aspect of innovation and the supply chain for cars. As important as it is today, you ain’t seen nothing yet.”

Conversely, said Gelsinger, automotive is becoming increasingly important to the semiconductor industry. With a projected total addressable market of 115 billion dollars in 2030, automotive is leaving behind its niche status in the semiconductor realm. And that’s why Gelsinger traveled to Munich: to woo the European car industry. “We need you and you need us.”