Car Memory Showdown: Samsung vs. SK Hynix

In spite of the persistent challenges facing the memory market, industry giants Samsung Electronics and SK Hynix are making significant strides in preparation for a potential dominance battle in the future automotive memory sector.

As per insights from research firm Omdia, reported by reputable South Korean news outlets Newsis and Seoul Economic Daily, the automotive industry's demand for Dynamic Random-Access Memory (DRAM) is expected to reach approximately 58.8GB per vehicle in 2023, with a projected near-doubling to 165.5GB by 2027. Concurrently, the demand for NAND Flash is anticipated to soar from 71.3GB to 157.6GB.

Advanced Driver Assistance Systems (ADAS) are key drivers behind this accelerated growth, necessitating robust data processing and storage capabilities. Notably, Google's autonomous vehicles can generate a staggering 1GB of data per second. With an average annual driving time of 600 hours in the United States, this translates to an annual data production of 2 petabytes (1 petabyte is approximately 1024 terabytes) per vehicle.

Beyond the well-established application of in-car navigation, the utilization of memory in the automotive sector is poised for expansion as systems like LIDAR, Traffic Control Systems (TCS), and automated parking gain wider acceptance in the realm of driving assistance.

The burgeoning streaming industry has significantly contributed to the escalating demand for mobile data storage. This, coupled with the evolving and diverse requirements within the automotive sector, paints a promising picture for the automotive storage device market.

In this context, Yole Intelligence forecasts an annual growth rate exceeding 20% for the automotive memory market, with revenues projected to surge from $4.3 billion in 2021 to $12.5 billion by 2027. Notably, Kiwoom Securities, a South Korean financial institution, predicts that by 2030, the semiconductor content per vehicle will increase three to fourfold compared to current levels.

As it stands, Micron currently enjoys a dominant market share of 45% in the automotive memory sector, followed by Samsung (13%) and SK Hynix (7%). However, both major South Korean players have a considerable gap to close when compared to Micron. As the automotive memory market continues its expansion, heightened competition is anticipated.

Samsung recently marked its inaugural appearance at the International Motor Show (IAA Mobility 2023) in Germany, showcasing its commitment by rallying its semiconductor divisions and research and development teams to compete aggressively for memory and semiconductor manufacturing opportunities within the automotive sector.

In parallel, representatives from SK Hynix delivered a keynote address, underscoring the critical role of high-performance, large-capacity memory in the context of automotive automation and electrification trends. They also introduced their comprehensive cybersecurity solutions and related offerings.