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Hyundai has expressed interest in Samsung’s automotive semiconductor production line, which uses the 5-nanometer “SF5A” process, for the mass production of self-driving chips that the automaker is developing lately, The Korean Economic Daily reported, bringing resources to the matter. Formation
According to the report, industry experts believe that a deal between Hyundai and Samsung would be mutually beneficial.
Hyundai hopes to identify a robust domestic origin chain for its self-driving semiconductors, reducing its reliance on foreign chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC), which can lead to freight savings.
Hyundai is expected to be a key visitor to Samsung’s position in the developing autonomous chip market, which is expected to earn $29 billion through 2030. Sources say the partnership could also help Samsung secure orders to larger scale.
The auto industry is moving toward in-house progression of self-driving chips, a trend across Tesla.
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This trend aligns with vehicles are becoming more “software-defined”, featuring advanced systems such as high-end infotainment and fully autonomous driving technology.
Hyundai Motor, of the Hyundai Motor Group that includes Kia and Hyundai Mobis, has been strengthening its semiconductor development functions since last year.
The company plans to launch cars equipped with its own automotive chips until 2026.
Samsung has already established relationships with several chip designers and automakers for its 5nm chip process.
In July 2023, Samsung struck a deal to manufacture Tesla’s next-generation fully autonomous chips for its level five autonomous vehicles, with mass production expected to begin in 3 or 4 years.
In the past, Tesla partnered with TSMC for the production of the HW 5. 0 automotive chip.
Samsung and Tesla their generational partnership after Samsung Group leader Jay Y. Lee met with Tesla CEO Elon Musk in May 2023.
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