As industries evolve rapidly and regulatory requirements tighten, GUC proactively addresses emerging risks that may impact our operations and stakeholders. Through cross-functional collaboration and structured processes, we continuously strengthen our capabilities in risk identification, assessment, and management to ensure resilience and competitiveness in sustainable operations.
Risk of Expanded Functional Safety and Design Liability for Automotive Chips
- Category
Technological, Other (Regulatory Change & Liability Allocation)
- Description
Global automakers and regulatory bodies, such as UNECE WP.29, are placing increasing emphasis on the functional and information security of autonomous driving and ADAS systems. Under future standards like ISO 26262 (Functional Safety) and ISO/SAE 21434 (Cybersecurity), if automotive chips fail and lead to accidents, IC design companies may no longer be regarded solely as component suppliers but could also bear direct design responsibility. As GUC enters Tier-1 automotive supply chains, we will face expanded design accountability, heightened technical validation requirements, and new contractual challenges.
- Impact
A comprehensive review and adjustment of design processes are required to clearly define responsibilities for design accountability and safety validation. Enhancing capabilities in functional safety mechanisms, failure analysis, and verification will be essential. As R&D and legal costs rise significantly, improper handling of design responsibilities and contractual terms could affect eligibility to enter Tier-1 automotive supply chains and increase exposure to legal risks.
- Mitigating Actions
GUC has established a dedicated automotive project team and introduced ISO 26262 functional safety training to build a strong safety culture and design processes within the company. Together with Tier-1 customers, we are defining development interface agreements and functional safety validation mechanisms based on ASIL levels. For high-risk projects, we have initiated risk assessment and management, safety mechanism design, and third-party certification processes. At the same time, our legal team is refining contract templates to address responsibility allocation, warranty obligations, and risk transfer clauses, ensuring alignment between contractual protection and risk management.
