Writing? /? Tu Yanping

Editing? /? Qian Yaguang

Design? /? Mr. Du Kay?

Huawei, a newly minted supplier of incremental components for smart connected cars, and Bosch, a century-old giant in the automotive parts division, have so much overlap in their businesses that it's hard to avoid comparisons between such two big players.

Recently Joss Auto Research chose 41 New Four metrics to compare Bosch and Huawei to assess their capabilities as New Four suppliers, resulting in a score of 161 for Bosch and 114.5 for Huawei.

"Huawei has Huawei's strengths, Bosch has Bosch's strengths, and it would be great if we could find a point of cooperation, and competition is inevitable." During this year's Beijing Auto Show, Dr. Xu Daquan, Executive Vice President of Bosch (China) Investment Co. Ltd. said so in an interview with the media.

Huawei, a first-timer in the automotive world, has a strong aura, but at this stage, it certainly can't be called a Bosch rival.

Bosch has accumulated 40 years of research and development experience in the field of in-vehicle software, with an annual expenditure of 3 billion euros. This year the Bosch Group's investment in electrification, automation and connected mobility will remain high and is expected to exceed 1 billion euros.

Bosch has roughly 30,000 software engineers worldwide, mainly in India and Vietnam. In China, Bosch now has more than 7,800 R&D staff, up more than 300 from the previous year.

Bosch also established a software center in Wuxi this year, which will further integrate and strengthen its local software development capabilities in China. Bosch also established its 7th global artificial intelligence center in Shanghai to promote local research and development of cutting-edge artificial intelligence technologies.

At this year's Beijing Auto Show, Mr. Xu Daquan revealed that Bosch will combine the original four business divisions of Powertrain Control, Body Control, Intelligent Cockpit, and Autonomous Driving into a new Intelligent Driving and Control division.

The new business unit, which is scheduled to be formally established in early 2021, will be located in more than 40 business locations in more than 20 countries and regions, with about 17,000 employees.

"This business unit is developed independently, and the software related to these domains will be led by this independent business unit to expand the business in the future." Xu Daquan said. It will focus on the development of future-oriented automotive electronic and electrical architecture, coordinating vehicle computers, control units and sensors, and unifying electronic systems and essential software for existing and new customers.

This means that Bosch has a new top-level design in response to the "software-defined car" industry trend.

Besides the emergence of new rivals such as Huawei, Bosch is also facing the challenge of a major change in the industry. The trend of separating automotive hardware and software has brought great changes to the relationship between automakers and suppliers, and the possibility of having Tier?1 do all the software is getting smaller and smaller.

In the future, software may account for up to 40% of the total cost of ownership of a vehicle. Bosch can't be a Tier?1 forever -- it may be a Tier?2, and there may be some divisions that continue to be a Tier?1, and maybe there are some things that are done by a third party, and all of these modes are being explored by Bosch.

In the field of intelligent cockpit, Bosch has already reached a cooperation with a local partner, transformed into Tier?2. This kind of flexible stature is also Bosch's positive adjustment in the face of change.

On Oct. 13, at the 2020 Sino-German Automotive Conference held in Changchun, Chen Yudong, president of Bosch (China) Investment Co., Ltd. said in his speech: "Tier?1 can't earn money in the future" and "Bosch, as a traditional Tier?1, I hope that in the future We don't have to be seen as a Tier?1. We are a technology and service provider."

Automotive electronic and electrical architectures are designed by the OEMs, and Bosch wants to do the top part of the electronic architecture, from the operating system to the AUTOSAR level, to the chip level. Xu Daquan said, "From Bosch's point of view, in the future, we sell software alone, hardware alone, or software and hardware together, are possible." ?

During this year's Beijing Auto Show, Dr. Xu Daquan and Mr. Jiang Jian, vice president of corporate communications and government affairs of Bosch Asia-Pacific, were interviewed by the media, including Automotive Business Review, to talk about Bosch's observation of the current changes in the automotive industry, their thoughts, and their own responses to the changes.

The following is an excerpt of the interview.

Or sell software alone, or sell hardware alone, or sell hardware and software together?

AUTOMOTIVE BUSINESS REVIEW: Software-defined cars have been mentioned particularly often lately. Many companies want the software to be developed by their own teams, and OEMs have their own software centers, either converted or reorganized. With what stance is Bosch involved? OEMs also have to focus on their own data security, between rapid development, iteration and data security, how does Bosch grasp this degree?

Xu Daquan (Executive Vice President, Bosch (China) Investment Co., Ltd.): "Software-defined automobile" is a concept that has been talked about a lot now. Indeed, the software inside the car will become more and more important, and software updates, performance expansion and upgrades are all possible because of connected technology, so this direction of development is certain.

Through such a development, first of all, it has become a "software-hardware" separation, and there is a tendency to separate the hardware domain controller from the software that drives it. After a separation, in the end the host factory to do what part, suppliers, other partners to do what part, this is the next division of labor to be refined.

The model will be different for different OEMs. It's possible to have Tier?1 do all the software, but we think it's becoming less and less likely.

Some OEMs say, "I'll do the overall integration," and the integration is subcontracted, so whose OS is used? The underlying software around the chip is used by whom? There is an interface in the middle, this interface is a very important level, this interface determines the car's sensor signals how to enter the interface level. On top of this there is the application level, there may be a variety of modes, such as the provision of application software, can be integrated into. In the middle, there are some applications, such as Tier?1, and the OEMs themselves, the division of labor will become very complex.

The electrical and electronic architecture is designed by the OEM, and around the electrical and electronic architecture, we build what kind of operating system on it, including AUTOSAR level stuff, including chips. What Bosch wants to do now is part of the electronic architecture, from the operating system to the AUTOSAR level, to the chip level. On top of that there's the interface level, which Bosch is also doing, and there are OEMs that are doing it themselves.

A particular OEM dominates which piece, Bosch provides which piece, Bosch's attitude is softer, you need which piece Bosch will provide which piece. In the future, from a software perspective, Bosch will take a modular approach. From the bottom of a layer of iteration, which should be done in accordance with certain standards, the interface between the combination of hardware and software to stay, change the chip, change the application above, have become very comfortable.

It's hard to say which step the OEMs have taken, some of them have bigger software centers and stronger capabilities, so they may do more, and there's a division of labor in the middle. From Bosch's point of view, in the future, we sell software alone, hardware alone, or software and hardware together, all possible.

Do you want the OEM to withdraw in this area and let you do it, or do you want it to have some departments as well?

Xu Daquan: For us, the broader the business, the better. Considering the reality, it may not happen, we just do what we are good at, or the part we can do well, and then push. It's not possible that all the domains, all the software is done by Bosch alone, that's basically unlikely.?

Some Tier?2 suppliers have also mentioned that now automakers are not satisfied with Tier?1, they not only work with Tier.1, but also go directly to Tier.2 and find lower tier suppliers to collaborate on the features they want. What does Bosch as a Tier?1 think about this situation?

Xu Daquan: We have been preparing for new developments for many years. Including the mentioned changes in the future of the electrical and electronic architecture, Bosch proposed in 2016 to go from decentralized control to cross-domain control to the whole computerized control in the future. Bosch's position will certainly change around that.

Now Bosch vigorously develop sensors, vigorously do software, this is our layout. In the future, the pattern will certainly change, we may do Tier?2, or maybe some departments continue to do Tier?1, maybe there are some things done by a third party, we form a cooperation, and promote together. The model is being explored now.

In the future, software may account for 40% of the total cost of the vehicle, in which case Bosch can not always be Tier?1. new models will continue to change, and we are also exploring. In this case, the individual has to do the positioning, the OEM has to position itself, which part it does, what we do, what the third party does, and must complete the transformation in an open and cooperative attitude.

Will the concept of Tier?1 and Tier?2 dissolve?

Xu Daquan: OEMs directly look for Tier?2, Tier?2 becomes Tier?1, everyone is changing, more flattened. Now we have a high degree of verticalization, do a hardware, this product who do, that product who do, one level one level drag a long time. When it comes to software in the future, it's much more flattened.?

Just now you said software accounts for 40% of the cost, corresponding to which model to which year?

Xu Daquan: For example, by 2025 or 2030, especially after the autonomous driving, intelligent cockpit domains are all up, in the future, among the cost of the whole car, the cost of software can reach 40%. It's hard to say exactly what year.

There are a lot of software engineers in Vietnam, for example, like the Wuxi Software Center mainly do? How many people will there be?

Jian Jiang (Vice President, Corporate Communications and Government Affairs, Bosch Asia Pacific): Bosch has about 400,000 employees worldwide, with more than 70,000 R&D engineers, of which about 30,000 are software engineers. Bosch has a large software center in India, which is now the largest software company within Bosch, undertaking a lot of Bosch's internal development projects as well as external development projects. In the past, it was more of a let's-do-it-in-India model, where China also had some software capabilities, but the core capabilities were in India.

Now we see a huge demand in the Chinese market, so we set up a software center in Wuxi. It is an independent legal person company invested and established by Bosch (China) Investment Co.

Many projects will be undertaken locally. After all, the local development capability is more in line with the needs of Chinese customers and the response time will be faster. Wuxi has had roughly 300 software staff in place for more than half a year since the official announcement of its establishment.

For our division, its options are still open, it can use Wuxi, or India, or even train its own software talent. But Wuxi has to prove that it is competitive, and one of the things that Chinese customers in particular expect to see is rapid response capability.

Will the Wuxi side focus more on smart cockpits?

Xu Daquan: Now it's more inside the controller, which we call embedded software, and that's where Bosch is stronger now. Next, interconnection-related software, big data-related software, including cloud-related this part, we will also recruit software engineers to serve these areas.

Will there be more business model changes in the next two to three years?

Automotive Business Review: Regarding the changes in the relationship between automakers and suppliers, before, it was all about automakers paying for development and suppliers making products based on demand. OEMs feel more need to share the pain or both sides' input, and going by the hardware and software split model, the business model will face changes. Has Bosch observed such a trend?

Xu Daquan: We have long realized that there is such a problem. But we have to rule out the idea that software is not worth the money. We used to think that software should be free, 5 dollars for a CD with all the software in it, which is totally incorrect. Software R&D investment, including the design of the entire software architecture, in the middle of a large research and development costs.

There are several models for the future, one is, you use my software, you pay R&D costs to buy the right to use it. There is another model, I give you to carry a platform, the future of every update of a thing, car users may download this software 5 dollars, download that software 6 dollars, so as to maintain the system. The initial cost is relatively low, later we share, such models will arise, especially when it comes to the introduction of ecological and online services, etc., these models we are also considering.

Bosch has not had such a model, so it is also considering from the perspective of promoting software, how to offer in the new model, how to work with the OEMs, which are all issues that must be considered.

This business model will come soon?

Xu Daquan: It has already begun. Some of the basic software you provide, the top additional things I charge again, once the basic things to you, equivalent to you inside with the Android system, Apple system, go this far, will immediately enter this mode. Now everyone is still in the exploration, the possibility of more business model changes within the next 2 to 3 years will be more likely.

Jiang Jian: There's an exhibit on the booth called FOTA, so you can check it out. It has this scenario designed in it, such as suddenly driving to an icy road and pushing a software package to you to make your car safer, but this software package may need to be paid for by the user. Of course, this is all still at the level of envisioning.?

Xu Daquan: FOTA things, such as I put this platform to the host factory to build a good, and the car connected. In the future you brush the ECU once we charge a fee, also possible, such a model will appear. All of the payment models on cell phones and so on are likely to appear in the future at the level of the car's application.

Just now you talked about the electrical and electronic architecture will be developed by the OEMs, is Bosch willing to do a common platform for software?

Xu Daquan: We would like to, but it's difficult. For example, like the Android and Apple platforms for cell phones, or the Huawei system, if you can make a platform, 30% of the market with my common platform is best. But in the automotive industry this is more difficult.

Some chip-related operating systems, such as QNX and linux, are already in use. Not only at the operating system level, but also at the interface level, the underlying software, and so on, it's very difficult for one company to dominate, and we haven't gotten to that point yet.

In the software part, is there any lead to do the standardization content?

Xu Daquan: We are also working with the industry, for example, some European standards, some Chinese standards, there is no complete unification, there may be different standards at all levels, Bosch hopes to do as much as possible to meet the requirements of everyone or we feel more consistent standards, in accordance with this direction in doing. It also does not exclude the requirements of some OEMs to provide some software separately.

This is the most complicated issue, to open the domain controller all, software layering, divided into different modules, are very huge a map. Now Bosch is working on each piece, but how to integrate it and by what standards is still being explored.?

Next year you will integrate the four domains in one department, OEMs to propose a smart cockpit program, undertaken by this department? Now there are three, India, four domains of the Division, and a Wuxi software center, there are such three subjects, how to determine?

Xu Daquan: The business belongs to such a division, it can let other software centers provide services for it, it has to pay. It has a part of the software can do it themselves, and a part of it can be subcontracted to several software centers in Bosch. The software center is an internal service, but it is also charged.?

The popularity of smart cockpits will grow faster?

Automotive Business Review: We've heard that the Bosch Smart Cockpit Solution is only available to select customers. How many screens can be assumed in the smart cockpit solution? Is the HMI in it made by Bosch itself, or is it in cooperation with car companies? Or are you an integrator? Do you do the operating system part?

Xu Daquan: Intelligent cockpit is a new development of domain controller which is more important to us. The electronic and electrical architecture of the car is becoming more and more complex, and each component system has its own separate controller, which has evolved into a cross-domain, so it's called a domain controller.

The future direction of development, intelligent cockpit domain will basically replace the traditional mechanical instrumentation with an electronic screen, integration of navigation and entertainment system, which shows the driver's monitoring, such as the driver's fatigue, cell phone, smoking and other behaviors of the monitoring, and 360 ° surround view.

Based on the ability of the chip, the intelligent cockpit can be divided into several kinds. Now pushing the Qualcomm 8155 chip, this chip can drag at least 5 screens, 9 cameras, computing power is very strong. Host factory is willing to drag how many screens, with the chip upgrade can be improved. We are now seeing the 8155 chip become very common, the next level is the 8195 chip, the function will be even more powerful.

In the past, Bosch has been a Tier?1. This time, in the smart cockpit area, we are working with a local partner to become a Tier?2, to bring out the speed and agility of Chinese startups as well as the flexibility and diversity of business.

Bosch guarantees that the local partner will supply the core part of the product, the internal underlying OS software and chip-related levels are all provided by Bosch. As for the HMI or car factory applications, or some other ecological import, by the local partner is responsible for. This time completely liberalized to carry out cooperation and expand products.

Intelligent cockpit will develop at what speed?

Xu Daquan: Very fast. This year, some car companies have begun to use the domain controller smart cockpit to the market, our products will be introduced to the market next year, the next popularity will be more and more rapid.

Roughly 2025 silicon carbide can be equal to the cost of IGBT?

Automotive Business Review: How is the yield of silicon carbide? How is the cost controlled? Compared with IGBT, the biggest problem is still cost. What do you think about the supply chain? At present, the supply chain is under pressure from two directions, one is that after the epidemic, everyone is moving towards short chain; the other is that China is now mentioning more about independent control. Do these have any impact on Bosch?

Xu Daquan: Silicon carbide is a next-generation technology, and from the perspective of energy saving, it is obviously better than IGBT. Now 400 volts are basically IGBT. 800 volts, basically to use silicon carbide, because 800 volts of IGBT is not so easy to control. From the energy-saving point of view, silicon carbide must be the direction.

From the cost point of view, because the amount of silicon carbide is relatively small now, the cost will be higher than IGBT. We predict that the cost should be equalized around 2025, and as the volume comes up, the price of silicon carbide will come down, and there is a transition phase. The advantage is that now you can save 6%, that is to say, need 100 degrees of electricity battery, you can save 6 degrees of electricity, 6% less batteries, or the same battery range increased by 6%, this benefit is still very big.

From Bosch's point of view, we do silicon carbide chips, and then we will also do the packaging of the module to the market.

When it comes to autonomy and control, this is a big issue. Thirty to 40 percent of the world's chips and the equipment to produce them are sent to China. At the same time, the Chinese government is stepping up its efforts to build chip factories and train chip talent in China, which requires huge investments that will take many years.

From Bosch's point of view, Bosch also attaches great importance to China, and we will try to apply our chips to China. Entering into this industry, in terms of silicon carbide we hope to make a difference and layout in China.

Jiang Jian: Bosch should be the only automotive parts company that operates its own chip plant. Bosch's first chip company has a long history, it should be in the 1980s and 1990s. The second one was invested a few years ago, when choosing the site, the whole world has seen, including also to China, and finally chose the site in Dresden, Germany.

The second chip plant will go into operation next year, which is the largest single investment project in the company's history of more than 130 years, with an investment amount of 1 billion euros. This enterprise will be put into production next year, after the production will have two wafer production plant, for Bosch itself is also a very big advantage, especially silicon carbide chips are Bosch's own production.

Both plants are producing their own?

Xu Daquan: Yes. Because the local government support in Germany is relatively strong, at that time we also considered several countries, including China, and finally took into account that the first plant has the experience to support the second plant, in Germany after all, it is easier to?

Traditional IGBT do?

Xu Daquan: Bosch does IGBT modules, but the chips inside the IGBT we are purchasing. IGBT modules are also made in Taicang, China. Silicon carbide chips next Bosch do their own, will also be sold to the outside world.

Bosch makes its own chips, and before that it did ECUs, and MEMS and so on. In the era of intelligent driving, the higher value-added chip is AI chip, Bosch will do in the future?

Xu Daquan: This chip is not done by Bosch for the time being, we are still using other companies' chips for autonomous driving. There are capable suppliers, they have a large volume, so it will be better. Now the chip inside the controller is basically purchased from big chip companies. For them, volume determines whether they can make a profit or not. Each chip in the end are sold very cheap, need to rely on the "volume" to be able to recover the entire investment. It wouldn't make sense for Bosch to build everything itself.

A new definition of the car of the future?

Automotive Business Review: Software and hardware will definitely be homogenized in the future. After homogenization, Tesla, Azera, etc., what will be their differences in the future?

Xu Daquan: From the perspective of domain controller, Tesla is very leading in the world. The next new electronic and electrical architecture will follow, and two or three years from now, everyone is likely to go down this road.

Homogenization is unlikely, you may use the system, the chip is relatively similar, but on top of this to expand the application level is different, each car to have their own characteristics, I want to have three screens, I want to use five screens, I want to have more interconnectivity features, service features, each family in the foundation of their own building, reflecting the differentiation. Including the setup of the car, etc., are not the same.

The definition of a car in the future will be defined in terms of the level of comfort, the level of connectivity, and how many new features can be introduced to the experience.

What will sell cars in the future? Software, hardware are up, and the final fight is brand, culture?

Xu Daquan: This question can actually be expanded a bit more, I personally think the future will be two models.

One is the private car, everyone still has to have a car of their own. In the present situation, what you want, you can always find a car that meets your requirements, size, maneuverability, connectivity, etc., you can choose, and each one will be different.

There is more future development, like smart travel, drip, Youbu make travel services, it is likely to customize some of the car to meet its requirements, may not be the same as a private car. The future of travel services, whether the "globalization"? It is also possible.

In the future, when we get to L4, it will be impossible for everyone to have an L4 car, and it won't be necessary. Because you'll only use it for an hour or two a day, the rest of the time it's parked there, and an L4 car can go pick up your neighbors, friends, and be ****ed with. Really to the L4 stage, *** enjoy travel may become mainstream, the vehicle is a travel tool.

Huawei's new entry into the field of auto parts, Bosch is the world's leading auto parts company, the two companies' products in electrification, intelligence is basically the same, the future may be a very direct competitor. What do you think about this matter?

Xu Daquan: This time we are talking about technological innovation, one is interconnection, communication has developed, and the second is the development of big data, artificial intelligence and so on. This will lead to the emergence of new suppliers, new people involved in the automotive industry, which is normal. The industry is constantly changing over the last 130 years or so, and there are a lot of startups doing relevant stuff in new areas.

Somehow the automotive sector needs volume to gain revenue. If the volume is small, it won't support your R&D, so volume is important. There's a possibility that after a new "Warring States Period" where everyone is PKing each other, a few more headline companies in a certain field will emerge.

Huawei's entry into this field seems natural to us, as it entered the automotive industry from the telecom industry, which is, after all, a very large industry. Huawei has Huawei's strengths, Bosch has Bosch's strengths, if we can find a cooperation point is also very good, competition is also inevitable.

This article comes from the author of the automotive home car, does not represent the views of the automotive home position.