In order to get rid of the global chip shortage, the South Korean government has recently made great efforts, announcing that it will spend US$450 billion to develop the world’s largest chip production base. The government has also provided huge subsidies to leading chipset manufacturers such as Samsung Electronics and SK Hynix.
Now, a new message from South Korea indicates that Samsung Electronics and Hyundai Motor Company have cooperated in an effort to internalize the supply chain of core automotive semiconductors.
On May 13, the two companies signed an agreement to cooperate in the field of automotive semiconductors with the Ministry of Trade, Industry and Energy, Korea Automotive Technology Institute, and Korea Electronics Technology Institute.
According to this report, Samsung and Hyundai will develop next-generation power semiconductors, image sensors, battery management chips, and application processors (AP) for automotive infotainment systems through technical cooperation.
In addition, these companies also hope to promote long-term joint technology development of access points for autonomous vehicles, artificial intelligence accelerators, and telecom processors for future cars. At the same time, the South Korean government plans to establish a system to enhance local self-reliance throughout the automotive semiconductor cycle.
However, South Korea is the world’s largest semiconductor substation, but the country only accounts for 2% of the world’s automotive semiconductor market. Although semiconductors used in automobiles are usually produced with 8-inch chips, Samsung is focusing on developing high-performance 12-inch chips.
After this cooperation, industry insiders believe that as the automotive market shifts to electric vehicles and self-driving cars, Samsung and Hyundai will be able to create a new market for system semiconductors.