“In the second half of 2023, it will be possible to see how much demand there really is for cars”

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Stephen Hartung is the CEO of the world’s largest auto parts manufacturer, Bosch. The affable engineer is fascinated by quantum technology, for the development of which his company has signed an agreement with the American hardware giant IBM.

Quantum computers are owned by the American, while the problems raised by Bosch will serve to use his computing power to investigate the chemical composition of electric car batteries.

The manager gave an interview to ABC within her convention
Bosch Connected World 2022.

This morning you said that quantum computing “is about to become a reality”. Would you dare to give figures for time horizons?

It’s impossible. Everyone says it will be in ten years. In technology cycles, this comes pretty close. 15 years ago there weren’t even plug-in hybrid cars. Now quantum computers are physics lab machines, they work under extreme temperatures – this is the only way to stabilize the qubits – they take up a lot of space and consume a lot of energy to run for barely a minute. I think it’s a fascinating technology, and if you’re already working on it, you’ll have the advantage.

Can you provide details about the collaboration agreement with IBM?

They have succeeded in making a quantum computer work experimentally. We are working on issues for which this processing is very interesting. If we’re already doing research in materials science, why not get involved and collaborate? There’s a big step between “it can work” and “it works” and we have two different perspectives on the same problem and that’s why we like it. We already have defined teams working together.

In terms of quantum sensors, what specifically are you working on?

We focus on magnetic field sensors. A quantum computer could measure a signal much more accurately than a traditional one. This means that things that were previously beyond our reach can be detected, but it also unlocks new problems and the need to develop new rules.

If Bosch could be just like any other technology company, what would it be?

We are different from any technology company because we come from a different place. Most come from a purely software environment or from a mix of software and hardware. We only come from hardware, we have made horns, diesel injectors or windshield wipers and we have started with electronics relatively recently. We naturally end up in a completely different place. The fact that we are not listed on the stock exchange means that our portfolio has to be much broader, it is too risky to focus solely on one thing.

How do you create a profitable software division?

Our philosophy is not to have an isolated business area, but it has to do with hardware and functional issues. We don’t program for computers, where if something doesn’t work you can just turn it off and start all over again. You cannot reset the system in a car traveling at 140 kilometers per hour. You need two types of profiles: programmers who adapt quickly and security specialists who are rigid and ensure that all processes work properly. Programming for the car of the future is a challenge and we always like that.

When do you think the semiconductor market will normalize?

The easy answer is “when supply and demand meet,” but I’m not an economics professor. Realistically, in some areas, such as telephony, normality has already been achieved. In the automotive sector, some chips will continue to be needed due to investment cycles, production capacity and industry transformation. In 2023 there will still be some pressure, but it will be better than in 2022. You also have to take into account that the cars will need more chips and there will be more demand. Customers want more interactivity and more features, and that requires a chip for everything. The real question is whether the demand for vehicles will remain stable in the coming years.

Do you think European car factories are at risk?

Sales have mainly shifted to Asia. China already accounts for three times the turnover of Europe and that is why you have to look at these markets. The European volume will not increase dramatically and depends to a large extent on whether the energy supply is guaranteed. For the next six months, demand for cars will be covered by backorders, even if no one buys cars. As early as the second half of 2023, it will be possible to see how much demand there really is and we will see a drop in volume if there are energy cuts. Until inflation is under control, there will still be a cap, so 2023 will be a very interesting year.

5G is being tested in the Aranjuez factory, what does this mean for production processes?

With 5G you have the option to apply high-frequency processes that are located in the plant. This is very powerful and if you really want to have mobility within the factory components you need these networks. The next industrial step will be the adoption of 6G, which will allow processes to be centralized in the cloud with zero latency and virtually unlimited bandwidth. For the car, this means that the number of on-board computers must be reduced and only the essential elements, such as security, must be present. However, it is essential that the network is reliable.

Bosch develops production monitoring systems. Is Bosch’s ultimate goal to control car production?

I believe that digitization will not lead us to a monopoly on control of production processes. We wouldn’t allow it on our chains, so why should anyone else? Industry 4.0 democratizes this kind of technology for all manufacturers. However, there will always be parts that remain confidential. What digitalization is good for is the stability of the production chain, logistical information or equipment maintenance.

Source: La Verdad

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