## 2 Conceptual Background
### Characteristics of Software Supply in the Automotive Sector  
The traditional structure of the automotive supply chain is a pyramid structure with OEMs at the top, where Tier 1 supplies vehicle electronics subsystems to the OEMs. In this subsystem, Tier 1 provides its own controller, operating systems, and application in the form of a black box, and the OEM receives these subsystems from multiple tiers, integrates them into a single electronic system, and applies them in mass production for the finished vehicle [32]. In summary, Tier 1 provides the (sub) system called ECU (Electronic Control Unit) to OEMs in the form of a black box, and here its own IP is included in the cost. At this time, the value of software is not recognized alone, but acknowledging the subordination of intellectual property rights to the hardware system, their significance is duly recognized. However, with the recent emergence of specialized software companies, the software Tier 1 is now communicating directly with the OEM and supplying only the software to the OEM based on its own software specifications. Currently, the OEM interacts with the traditional tiers in a different way. The software Tier 1 requests the OEM to implement its own software or software development specifications in hardware. In this case, Tier 1 may be reduced to a supplier of hardware only, and as ECUs that were previously provided as black boxes become white boxes, intellectual property rights (IP) may not be recognized, resulting in the deterioration of Tier 1 profitability. This trend is expected to intensify in the future. Until now, Tier 1 has supplied (sub) systems equipped with proprietary hardware, operating systems, and domain software. The OEM had to accept the ECUs required for electronic systems even though they used various operating systems and semiconductors (MCU, CPU, GPU, etc.) from different manufacturers, as without Tier 1's cooperation, it was difficult to optimize the required performance and function in a timely manner or to release the product required by the market in time. However, as the importance of software is being emphasized, OEMs are working to improve this business structure by standardizing their own software platform or, furthermore, the architecture for electrical and electronic \begin{table}
\begin{tabular}{c p{142.3 pt}} \hline \hline
**Category** & **Key Technology** \\ \hline Infotainment software OS for integrated control of electronic parts & Infotainment SW platform, tools, etc., applied to convenience devices, etc. \\  & SW for integrated vehicle control such as OSEK and RTOS; SW platform for safety and electronic parts and electronic components such as electronic devices applied to vehicle safety devices, tools, etc. \\  & SW for external connection and communication service and big data, artificial intelligence and IoT interworking, V2X interworking, etc. \\  & SW for development and verification \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Classification of vehicle SW.  
equipment. As a result, they will move on to receiving only (sub) systems with low added value from their suppliers. The following data explain that the Electrical/Electronic (E/E) architecture of traditional vehicles has a distributed structure with dozens of ECUs connected in a network [33], while Tesla's architecture is integrated in a centralized manner (Figure 1). The technology gap between traditional automotive OEMs and Tesla's software control architecture is estimated to be around 10 years, and steps are being taken to narrow this gap. Major global OEMs, such as Volkswagen, Toyota, Mercedes-Benz, and Volvo, are already implementing this phenomenon [34]. By standardizing their own software platform or electrical and electronic equipment architecture, OEMs can achieve cross-layer optimization, shorten the development period, improve software quality, and diversify their suppliers away from Tier 1-dependent business structures [35].