Vehicle Semiconductor cooperation between the two parties, “first step” initiatives like ADAS and IVI, etc. Chip design and production for Hyundai Motor Company, Jae-yong Lee and Eui-sun, the leaders of Samsung Eui-sun are founded on faith.
Two Korean Giants Coming Together for Developing ADAS Semiconductor
Hyundai Motors and Samsung Electronics collaborate in the area of automotive semiconductors. It has been established that Samsung Electronics was given the design and manufacturing of crucial chips used to integrate ADAS and infotainment by Hyundai Motor Company. Samsung Electronics opted to design the microprocessor and produce it using the front-end process after receiving multiple requests from Hyundai Motor Company.
A consignment designing and foundry contract for semiconductors has just been signed by Hyundai Motor Company and Samsung Electronics. The two main organisations that represent the domestic business community are working together for the first time. According to analysts, the third-generation leaders’ strong trusting bond, which included Chairman Lee Jae-yong and Chairman Chung Eui-sun, was encouraged. The tension and “check mentality” between the two groups, which were fostered when they were known as “Samsung Motors” under the previous president, are widely believed to vanish if this alliance is successful. Also, there are indications that electric vehicle batteries will work together more closely in the future.
The System LSI Division of the Device Solutions (DS) Division of Samsung Electronics reportedly began design partnership work with Hyundai Motor Company from the end of last year with this as the key point, according to the publication of this magazine on the 15th.
Hyundai Motor Company gave Samsung the criteria it needed to create an ADAS main chip, an In-Vehicle Infotainment (IVI) chip, and a connectivity chip that ensures communication between these two chips. It is known that each one of them uses a system-on-chip that is made by Samsung using its 5-nano technology (SoC). A core chip for ADAS has been designed as the initial item. In October of the previous year, construction got underway.
According to a source with direct knowledge of the situation, Samsung semiconductors “are likely to be put in Hyundai Motor’s luxury automobiles around 2025-2026.”
Scarcity in SOCs due to Covid-19 Outbreak Led to this Semiconductor Partnership
In the meanwhile, Qualcomm, Nvidia, and Intel in the US have supplied vehicle infotainment SoCs to Hyundai Motor Company. Yet, since the Covid-19 event, there has been a severe chip scarcity and price increases that go against logic. Even if not fully absorbed, it appears to have now acknowledged the necessity to increase domestic chip purchases.
The former president Moon Jae-in invited Chairman Lee Jae-yong and Chairman Chung Eui-sun to the Blue House in December 2021 as the automotive semiconductor shortage persisted for more than a year and publicly suggested enhancing semiconductor collaboration between Samsung Electronics and Hyundai Motors. Previous to that, in May 2020, Chairman Chung Eui-sun visited the Cheonan Plant of Samsung SDI, and in July of the same year, Chairman Lee Jae-yong visited the Namyang R&D Center of Hyundai Motor Company, furthering their close interactions. The automotive semiconductor industry is the first area of cooperation to emerge from such constant interchange, the expert noted.
Samsung Electronics – The Technically Superior Company in Vehicle SoCs
Vehicle SoC development is a specialty of Samsung Electronics’ System LSI Division. The same company is currently working with design house partner Corasia to jointly create SoC for future vehicles after beginning with SoC for infotainment for Audi automobiles. Samsung Electronics also developed and successfully mass-produced a SoC for automation, which Tesla incorporated for the first time.
According to a different industry insider, “Hyundai Motor Company is expected to gradually expand purchases and reduce the proportion of foreign products if the first partnership between the two firms is successful.”
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