Samsung Secures Hyundai's 5nm Autonomous Chip Order

According to Sammobile, Hyundai Motor Group has entered into a collaboration with Samsung Electronics, entrusting the production of its self-developed autonomous driving chips to Samsung's advanced 5nm semiconductor manufacturing process.

As smart automotive technologies continue to evolve, automakers like Hyundai are increasingly developing their own custom chips, requiring reliable semiconductor manufacturing partners. Samsung, as the world's second-largest semiconductor foundry, is well-positioned to produce cutting-edge autonomous driving chips for the automotive industry.

However, Samsung's foundry business has faced challenges in recent years, with slow improvements in its advanced process yields and setbacks in maintaining key customer relationships and order volumes. In response, the company is actively seeking to expand its customer base across various sectors, including local markets.

This collaboration between Hyundai and Samsung is seen as a mutually beneficial partnership. For Hyundai, working with Samsung ensures a stable, localized supply of chips, reducing reliance on foreign companies like TSMC and helping to cut costs. Hyundai is expected to release its self-driving vehicles equipped with these chips by 2026.

For Samsung, this partnership provides a significant boost to its revenue, helping to attract more automotive customers in the future. The automotive semiconductor market is projected to be worth $29 billion by 2030, presenting a promising growth opportunity for Samsung in this rapidly expanding sector.