Explore challenges and solutions in AI chip development
In the race to develop software-defined vehicles (SDVs), automotive manufacturers (OEMs) and their suppliers are facing pressure from all angles. As differentiating features of automobiles are increasingly defined by software, OEMs are transforming their development processes from hardware- and component-centric to software-centric approaches.
With vehicular codebases often exceeding those of commercial aircraft, OEMs must wrangle enormous complexity. They need to shorten development cycles to compete and differentiate in a fast-paced global market. They need the ability to deliver frequent software updates throughout the vehicle’s lifecycle. Quality, safety, security, and reliability must be assured. And cost pressures are enormous.
All of these challenges demand faster, more rigorous software development, testing, and validation.
While traditional hardware-in-the-loop (HiL) testing rigs are still a mainstay for system validation, their expense, latency, and inflexibility are increasingly at odds with the agility required by today’s automotive software development practices.
To enable earlier and more efficient software testing and validation, the industry is adopting cloud-based development practices and the use of virtual prototypes. Our new Virtualizer Native Execution solution for Arm-based machines was designed to help automotive companies with this paradigm shift.
Discover key strategies and expert insights to ensure reliable and trustworthy automotive semiconductors.
Automotive software is simultaneously becoming more expensive and central to a car’s identity. Infotainment, advanced driver-assistance systems (ADAS), traction control, and even powertrain management are all shaped by lines of code. The growing adoption of electric vehicles (EVs) and the push toward fully autonomous transport have further increased the role and importance of automotive software.
The shift from hardware-centric to software-centric vehicles means OEMs and suppliers must rethink their development models entirely.
The IT industry pioneered cloud-native development approaches, leading to web applications and Software-as-a-Service (SaaS) solutions that are quickly delivered and continuously updated. These approaches involve incremental development and a strong emphasis on automation. DevOps practices further bridged the gap between the software development process and its operational deployment environment. Thanks to technologies such as containerization, testing cycles are now performed and automated in a production-simulated environment.
This is one of the key challenges for OEMs and suppliers adopting cloud-native methods for SDV development: The replication of the operating environment — the vehicle — when developing and testing software.
While the cloud provides virtually unlimited compute and collaboration resources, physical hardware — the ultimate destination for automotive software — often lags behind in availability. Teams often wait months for silicon or electronic control units (ECUs) to be ready for initial testing and validation. If hardware revisions are required, it extends the waiting period before OEMs and their suppliers can fully test their software at scale.
This is where virtual prototypes enter the equation.
Virtual prototypes are models of target hardware that are used for software development, testing, and validation — before the hardware is available. Increasingly referred to as electronics digital twins (eDTs), these virtual prototypes:
Virtual platforms have existed for decades and are used throughout the embedded software industry for “shifting left” software development. That is, starting software development before hardware is available to gain precious time in an otherwise sequential development process. This results in a significant time-to-market advantage.
A notable example is the open-source community’s use of QEMU, an emulator that allows open-source software stacks to leverage cutting-edge Arm CPU features well before the corresponding hardware is available.
But traditional emulation-based techniques and tools were never designed for the complexity of modern automotive processors, such as Arm’s Cortex-A720AE, or the runtime demands of continuous, cloud-based software development.
With the introduction of Virtualizer Native Execution, we are addressing these limitations and enabling Arm embedded software to be executed directly on Arm server CPUs — in the cloud, with no emulation or hardware required. This means developers can run workloads at the speed of the eventual hardware, roughly 100x faster than traditional instruction set simulators, while retaining the benefits of virtual prototypes and full compatibility with the existing ecosystem of models, tools, and workflows.
The technical and operational impacts are profound:
An essential part of this puzzle is the SOAFEE (Scalable Open Architecture for Embedded Edge) initiative. Led by Arm and other industry stakeholders, SOAFEE provides a standardized framework and reference architecture — based on the principles of modularity and orchestration — for SDV workloads. By adhering to common standards like SOAFEE, the ecosystem of automotive OEMs, suppliers, and technology leaders can increase interoperability and reduce vendor lock-in.
In collaboration with Arm, we demonstrated at Embedded World 2025 how virtual prototypes, SOAFEE reference architecture, and cloud-to-edge software development come together:
While the technical underpinnings are compelling, the business value of virtual prototypes and cloud-native development is just as important. Cloud-based workflows are becoming a prerequisite for meeting time-to-market expectations in a world where vehicle features are continuously updated via over-the-air (OTA) software pushes.
Virtual prototypes minimize the reliance on HiL rigs, reduce CapEx and OpEx, and allow distributed teams to develop and test in parallel. By enabling early and scalable validation, they help mitigate the risk of schedule slippage due to delayed hardware availability. And by aligning development and target architectures through Arm-native cloud compute, they eliminate costly architectural mismatches late in the cycle.
Together, these shifts can materially reduce validation cycles, accelerate feature deployment, and improve team productivity.
Our collaboration with Arm and other SOAFEE partners is ongoing, and forthcoming advances to Virtualizer Native Execution will enable more complex scenarios and system-level parity. This includes better support for real-time behavior, safety domains, and full-vehicle E/E system integration.
In the meantime, the automotive industry has a powerful foundation on which to build. As software continues to define the value, safety, and experience of tomorrow’s vehicles, the tools and methodologies used to build that software must evolve in kind.
Virtual prototypes, executed natively in the cloud, are now becoming a business imperative.