Thought Leadership

Communicating across software, electronics, and hardware in SDVs

The software-defined vehicle (SDV) is not only pushing OEMs to adopt more of the electronics and software development in-house, but it is making collaboration with the wider value chain a greater requirement for successful automotive projects. Vehicles today are more complex than ever with sensors, control systems, and advanced driver assistance features (ADAS) driving this change. This brings a necessary shift in how vehicles are developed, with a focus on accurate, transparent, and reliable communication. The Digital Twin helps accelerate this shift and make the SDV a more profitable opportunity. 

To dive into how OEMs are transitioning their development processes to accommodate the growing share of software and electronics in vehicles, we brought together three experts for episode seven of On the Move, a Siemens automotive podcast. Our host and VP of Automotive and Transportation, Nand Kochhar sat down with Michael Munsey (VP of Electronics and Semiconductor) and David Fritz (VP of Virtual and Hybrid Systems). 

You can listen to the full conversation below or maybe look back at episode six where they cover how the software-defined vehicle is upending traditional automotive development. If you want just the highlights, keep scrolling for a summary of this great conversation.

The increased value of the software running on ECUs (electronic control units) is bringing a shift in business models. Instead of tier one suppliers delivering a combined software and hardware product based on pre-defined requirements, OEMs are taking on new roles in the development and validation of these subsystems. For example, lighting clusters now have a much greater and more-integrated role in the operation of vehicles by providing assistance cues to the driver and relying on automated signally for some ADAS features. Working in the Digital Twin from day one makes sharing requirements, iterating on designs, and validating operation across the entire system a more achievable task.

In addition to the interconnectedness of electronic features, OEMs and suppliers need to work together to provide greater longevity to these subsystems. These vehicles will be on the road for 10, 15, 20 years and these designs need to be supported as new models come out. The requirements and functionality of these systems need to be preserved such that a future software update does not disrupt vehicle operation because of a shift in vehicle architectures. And if the intent is to continuously update or upgrade these software systems, a buffer needs to be built into the hardware systems to provide the necessary compute power for those future changes instead of shipping today with just enough resources to run the software of vehicles leaving the factory.

Understanding how an SDV will age is a difficult question to answer and making simulation and testing an invaluable resource. OEMs need to know how electronic system will interact even before final designs for silicon and communication are set. By designing within a comprehensive Digital Twin with multi-fidelity, manufacturers reduce their reliance on physical prototypes and keep project timelines in check.

The wider trend of chiplet designs for electronics is another big change for the automotive industry. By utilizing this modularized approach, OEMs and their suppliers can more effectively parallelize their development because certain functions and features are well-defined from a very early point and some work can be re-used between vehicles models and revisions. But the greatest take-away for the industry shift to SDVs is the necessity of early, frequent, and transparent communication across the value chain. OEMs need to be able to check system inter-compatibility and suppliers need to have a reliable way to validate their designs within the larger system.

There is a lot more our experts covered in episode seven of On the Move. And if you are looking for even more that what they discuss in the episode, you can check out the previous conversation on the podcast, subscribe so you don’t miss future episode, or go to our website to learn even more about the wider automotive and transportation industry.


Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.

Nicholas Finberg

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This article first appeared on the Siemens Digital Industries Software blog at https://blogs.sw.siemens.com/thought-leadership/2025/04/30/communicating-across-software-electronics-and-hardware-in-sdvs/