Hyundai aims to establish a domestic supply chain for its autonomous driving semiconductors.
South Korea’s Hyundai Motor is reportedly in talks with Samsung Electronics to manufacture automotive chips for self-driving vehicles.
Hyundai has shown interest in leveraging Samsung’s automotive semiconductor production line, which utilises the 5-nanometer “SF5A” process, for the mass production of autonomous driving chips that the automaker is currently developing, reported The Korean Economic Daily, citing sources familiar with the matter.
Industry insiders suggest that an agreement between Hyundai and Samsung would be mutually beneficial, according to the report.
Hyundai expects to establish a stable domestic supply chain for its autonomous driving semiconductors, reducing dependence on foreign chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC), which could result in cost savings.
Securing Hyundai as a key client is expected to strengthen Samsung’s position in the growing autonomous chip market, projected to reach $29bn by 2030. According to sources, this partnership could also open the door for Samsung to secure more large-scale orders.
The automotive industry is moving towards in-house development of autonomous driving chips, a trend started by Tesla.
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, a part of Hyundai Motor Group that includes Kia and Hyundai Mobis, has been bolstering its semiconductor development capabilities since last year.
The company anticipates launching vehicles with its own automotive chips by 2026.
Samsung has already established relationships with several chip designers and automakers for its 5nm automotive chip process.
In July 2023, Samsung secured a deal to manufacture Tesla’s next-generation full self-driving chips for their level-5 autonomous vehicles, with mass production expected to commence in three to four years.
Tesla previously partnered with TSMC for the production of the HW 5.0 auto chip.
Samsung and Tesla strengthened their technological partnership after Samsung Group leader Jay Y. Lee met with Tesla CEO Elon Musk in May 2023.
Source from Just Auto
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