Samsung partners with Hyundai Motors to develop car chips

car chips

Samsung has joined forces with Hyundai Motor Company to collaborate with the South Korean government and some agencies to tackle the global shortage of car chips.

To tackle the worldwide major shortage of semiconductors at the moment, Samsung has teamed up with Hyundai Motor Company. Both corporations recently reached an agreement with the Korean Electronics Technology Institute, the Korea Automotive Technology Institute, and the Ministry of Trade, Industry, and Energy. 

The results of this partnership, however, could take years to manifest because the semiconductor industry is a long-term and capital-intensive business. While the new Samsung-Hyundai alliance will largely benefit the local automobile industry, if it succeeds, it might have global implications. 

Global shortage of car chips to last well into 2022

Owing to the global shortage of auto chips, particularly automotive microcontrollers, numerous South Korean automakers have had to temporarily suspend production at their plants. South Korea is the world leader in microchip technology, although it falls behind in logic chip development. 

Samsung Electronics has boosted its logic chip investment plans by 38 trillion won to 171 trillion won ($151 billion) until 2030 in order to become the world’s largest logic foundry. 

After TSMC, the world’s second-largest foundry, Pyeongtaek will introduce a new assembly line in the second half of 2022. The line will produce 14nm DRAM and 5nm logic chips, which will all be made using advanced extreme ultra-thin lithography technology. 

Read more: IBM creates the world’s first 2-nanometer chip technology

The collaboration between the two companies for car chips is part of a long-term strategy to promote the automobile industry’s expansion. They could be the conclusion of both companies’ efforts in corporate social responsibility. The goal continues to offer a stable supply basis for semiconductor manufacture in the automotive industry’s home market. 

The fine details of the Samsung Hyundai collaboration including timelines and deliverables will be unveiled soon.

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