The objective of this paper is to discuss latest developments in the semiconductor technology industry which lead to state-of-the-art automotive electronic systems.Automotive systems are becoming increasingly complex as throughput requirements for electronic control units (ECUs) increase and a number of networks are being implemented to share data between ECUs. The motivation behind this explosion of electronics will be discussed along with the challenges which are faced in realizing solutions.Advanced ‘system-on-a-chip’ semiconductors are being developed as an enabling technology to facilitate such systems. This paper will discuss the most significant requirements of such automotive systems and the types of semiconductor technologies which are to be provided as leading edge solutions.In addition to breakthroughs in silicon integration and performance, associated technology requirements such as packaging and development tools are changing significantly. Progress in Distributed embedded control is resulting in smart sensors and actuators which are physically scattered throughout the vehicle. Distributed vehicular electronics architectures will be discussed as well as the paradigm changes in electronics development.