Samsung Electronics has secured a major semiconductor contract with Hyundai Motor Group. This deal marks a significant expansion into the automotive chip sector. The agreement was finalized recently, according to industry reports. It represents a strategic win for Samsung’s foundry business.
The partnership will see Samsung supply crucial components for future Hyundai vehicles. This move strengthens the tech giant’s position against rival TSMC. The automotive industry is a new and vital growth area for chipmakers.
Samsung to Manufacture Advanced 8nm Automotive Chips
Samsung Foundry will produce advanced 8-nanometer chips. These chips are designed for Hyundai’s upcoming autonomous driving systems. A report from Reuters confirms the deal’s scope. Mass production is scheduled to begin by 2030.
Hyundai developed the chip design in-house. The company chose the 8nm process for its balance of performance and cost. This technology will be used across Hyundai, Kia, and Genesis brands.
A more advanced 5nm chip is also reportedly in development. That flagship component may be delayed until next year. It is expected to debut in premium Genesis models.
Strategic Shift to Diversify Chip Client Portfolio
This Hyundai partnership is part of a broader strategic shift. Samsung is aggressively pursuing clients beyond the smartphone market. The company aims to reduce its reliance on a few large customers.
According to the Associated Press, Samsung is also engaging other AI and automotive firms. The goal is to compete more effectively with TSMC’s dominant market share. Winning major automotive contracts is a key part of this plan.
The foundry business has faced challenges in recent years. It lost clients like NVIDIA and Qualcomm to its Taiwanese rival. Securing Hyundai helps offset those previous losses.
This new partnership solidifies Samsung’s foothold in the competitive automotive semiconductor space. The Hyundai chip deal is a clear signal of the industry’s evolving supply chain and technological demands.
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What chips will Samsung make for Hyundai?
Samsung will produce 8nm chips for autonomous driving systems. These chips were designed by Hyundai’s own engineers. They are scheduled for mass production by 2030.
Why did Hyundai choose Samsung for this deal?
Hyundai selected Samsung for its advanced manufacturing capabilities. The 8nm process offers a strong balance of performance and affordability. This partnership ensures a stable supply of crucial components.
How does this help Samsung compete with TSMC?
Winning a major automotive client diversifies Samsung’s business portfolio. It reduces reliance on the volatile smartphone chip market. This deal demonstrates its ability to serve high-stakes industries like automotive.
Will these chips be used in all Hyundai cars?
The 8nm chips will be deployed across various Hyundai, Kia, and Genesis vehicles. A more advanced 5nm chip is planned for future premium models. This tiered approach optimizes cost and performance.
What does this mean for the auto industry’s future?
It highlights the growing collaboration between carmakers and chipmakers. In-house chip design gives automakers greater control over their technology. It also secures vital supply chains for future innovation.
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