Indian EV Battery Fires Linked to Cheap Semiconductors, Says NXP CTO

In a recent interview with Moneycontrol, Lars Reger, the Chief Technology Officer of Dutch chipmaker NXP Semiconductors, has attributed the battery unreliability issues faced by Indian electric vehicle (EV) manufacturers to the use of cheap components not optimised for automotive applications. NXP is one of the world's largest providers of automotive chipsets, particularly for battery management systems.

Reger explained that many Indian EV makers have been using inexpensive chipsets designed for thermal management in laptops, which are not suitable for the harsh conditions EVs are subjected to, such as monsoon rains, extreme temperatures, and intense sunlight. "What these companies have done is that they have taken cheap solutions from laptops into complicated battery management systems," Reger stated. "My laptop is here in this room. But it never gets monsoon rain, the New Delhi sun, or minus 20 degrees temperature in northern Germany winters. Therefore, do not use consumer electronics in battery management systems."

He further elaborated on the cost implications of using proper automotive-grade chips, saying, "They used the cheapest solutions. And, it was the same failure each time. Then India market has to be super, super cheap, and they cannot afford a little bit more expensive battery management chips. Now, the cost of the battery management chips, as compared to the entire scooter or car that you are building, is a joke. It's a fraction. Even if you double the price of these chips, you will not really recognise it on the sales price of the entire vehicle. A lot of people made the beginner's mistake of taking cheap consumer solutions."

NXP Semiconductors, which was spun out of Philips in 2006, has a significant engineering presence in India, with approximately 4,000 employees across Delhi NCR, Bengaluru, Pune, and Hyderabad. The company generates 55% of its revenue from automotive chips, while the remaining comes from industrial applications such as mobile payments. NXP's most advanced automotive chip, designed at its Noida facility, features 4 billion transistors on a 5nm node, a technology comparable to the processors found in the M2 MacBook Air and last year's iPhone 14 models.

The company also develops semiconductors for autonomous driving, focusing on level 3 technologies for Advanced Driver Assistance Systems (ADAS) in high-end luxury sedans like the BMW 7 Series and the Mercedes S Class. Reger described the modern car as a "brain on wheels," emphasising the intricate network of functional layers within the vehicle.

As the Indian EV market continues to grow, manufacturers must prioritise the use of automotive-grade components to ensure the safety and reliability of their vehicles, even if it means a slight increase in production costs.